Bitcoin Surges Over $109K as Crypto Market Bounces Back on Vietnam Trade Agreement and M2 Money Supply Rise
The crypto market made a strong recovery on Wednesday, rising 2% to re-take a $3.5 trillion market capitalization, led by Bitcoin and top altcoins’ bullish sentiment. Bitcoin rallied past $109,000 after news of a new U.S.-Vietnam trade pact and further growth in the M2 money supply was announced, indicating higher liquidity levels in the economy. Ethereum, XRP, and Solana echoed the gains with 7%, 3%, and 4% increases, respectively. The rally induced more liquidations than $320 million, mainly from short positions, as investor sentiment shifted sharply positive across the crypto board. KEY LOOKOUTS • Bitcoin broke through the $109,000 level, close to its all-time high, driven by macroeconomic events and increasing investor appetite. • Ethereum, XRP, and Solana all rallied hard, up by 7%, 3%, and 4% respectively, with the overall altcoin market also registering good gains. • A new U.S.-Vietnam trade agreement lifted spirits, lowering tariffs and enhancing market confidence in global trade relations. • The U.S. M2 money supply increased 4.5% year-over-year, hitting an all-time high of $21.94 trillion — a positive sign for risk assets such as crypto. The crypto market saw a significant pop on Wednesday thanks to a mix of macroeconomic events and renewed investor confidence. Bitcoin rallied above $109,000 after news of a trade deal between the U.S. and Vietnam that is likely to relax tariffs and improve global trade sentiment. Further, an ongoing increase in the U.S. M2 money supply to an all-time high of $21.94 trillion indicated greater liquidity in the system that further encouraged bullish sentiment. That more general positive move swept altcoins upward as well, with Ethereum, XRP, and Solana making significant gains, signifying a broad-based recovery in the crypto space. Bitcoin jumped above $109,000 as sentiment surged with the U.S.-Vietnam trade agreement and an increase in the M2 money supply. Altcoins such as Ethereum, XRP, and Solana also had good gains, leading a 2% rise in the overall crypto market. The rally caused more than $320 million in liquidations, predominantly from short sellers. • Bitcoin jumped above $109,000, close to its all-time high, on good macroeconomic news. • U.S.-Vietnam trade agreement relaxed tariffs and lifted market sentiment, supporting crypto market gains. • Ethereum, XRP, and Solana gained 7%, 3%, and 4% respectively, demonstrating robust altcoin momentum. • Crypto market capitalization recovered by 2% to $3.5 trillion. • U.S. M2 money supply rose 4.5% YoY to an all-time $21.94 trillion, indicating increasing liquidity. • Bitcoin futures open interest rose from 651.66K to 689.78K BTC, valued in excess of $75 billion. • $320.6 million in crypto liquidations in the past 24 hours, of which $258.5 million resulted from shorts. The crypto market witnessed a wave of renewed optimism as international events and economic indicators came together to fuel investor optimism. A key driver was a statement by the United States that it will sign a new trade deal with Vietnam, forecast to relax trade barriers and usher in new economic avenues. This geopolitical action was viewed positively by financial market participants, as this implies more international coordination and possible expansion in cross-border trade. The deal also signaled zero duties on Vietnamese imports of American goods, which could find favor with the overall financial market mood. BITCOIN DAILY PRICE CHART SOURCE: TradingView At the same time, growth in the U.S. M2 money supply contributed another component of bullish sentiment. The rise in liquidity available tends to indicate an improved setting for risk assets, such as cryptocurrencies. Investors saw the sustained expansion of money supply as a signal for potential investment and spending activity, and this would have positive implications for the digital asset space. These encouraging trade developments and macroeconomic signals combined to send the entire crypto space into a robust rally, with major altcoins and Bitcoin taking the lead. TECHNICAL ANALYSIS Bitcoin’s breakout above the $109,000 level is strong bullish momentum, with the next significant resistance at its all-time high of $111,970. The recent surge in open interest indicates rising investor involvement and confidence in the current uptrend. Ethereum also broke out in a bullish manner above significant resistance at about $6,200, aided by rising trading volume, while XRP and Solana demonstrated consistent uptrends, remaining above their 50-day moving averages. Market structure in leading cryptocurrencies is still bullish, with higher highs and higher lows supporting the prevailing bullishness. FORECAST Should present momentum continue, Bitcoin is likely to retest and possibly break its all-time high of $111,970, provided macroeconomic environments remain supportive and institutional demand continues. Ethereum and other altcoins would likely follow, with Ethereum targeting the $6,500 mark, while Solana and XRP would likely benefit from increased investor confidence. Further growth in the money supply of M2 and favorable global trade conditions can serve as catalysts for a sustained rally in the overall crypto space. Still, there are downside risks if macroeconomic conditions change or geopolitical tensions flare up again. A pick-up in the U.S. currency, surprise regulatory statements, or an unexpected change of investor mood could induce a pullback. Bitcoin can draw key support at the $104,000 level, while Ethereum can retrace to about $5,800 if selling sets in. Falling market liquidity or a risk-off sentiment across the globe could whittle down the current rally and result in short-term corrections.