by Bitcoin Price Update: Surging Towards $115K
In the Asian morning hours on Thursday, Bitcoin (BTC) was trading around $114,200, reflecting a 2.4% increase over the past 24 hours. As major cryptocurrencies firm up amidst a heavy macroeconomic backdrop, traders are closely monitoring recent price movements. Alongside Bitcoin, Ethereum (ETH) also showed positive momentum, climbing 2.4% to reach $4,400, while XRP (XRP) surged above $3. BNB Chain’s BNB approached the $900 mark, and Solana’s SOL experienced nearly a 3% gain.
Dogecoin: The Memecoin Outperformer
Among the top performers, Dogecoin (DOGE) has outshined its competitors with a remarkable 5% daily gain, extending its impressive weeklong rally to 15.9%. This performance has garnered attention as traders begin to reassess valuation trends across the cryptocurrency market. The recent surge in Dogecoin’s price could be attributed to increased interest in memecoins, which have captured fresh inflows from traders eager to capitalize on market movements.
Bitcoin’s Fair Value and M2 Growth
A report by CF Benchmarks earlier this week highlighted that Bitcoin is currently trading below its fair value range when compared to the growth of U.S. M2 money supply. The firm noted that the disparity between M2 expansion and Bitcoin’s price is at its widest since August 2024, presenting a potentially lucrative entry point for investors. Historical correlations show that similar divergences in previous years (2016, 2019, and 2021) preceded notable upward price movements for Bitcoin.
Understanding M2’s Impact on Bitcoin Prices
Over the last decade, Bitcoin has exhibited a positive correlation with M2 growth, with monetary expansion usually leading price movements by approximately three months. If this historical trend continues, liquidity enhancements anticipated later in Q4 could facilitate a further price increase for Bitcoin. Traders should remain vigilant and consider the implications of monetary policy on future price trajectories.
Technical Analysis: Bitcoin’s Key Levels
Despite recent gains, Bitcoin still faces critical levels to reclaim. According to Alex Kuptsikevich, chief market analyst at FxPro, Bitcoin continues to attract buyers during intraday dips. “The main battle now revolves around the $112K level,” Kuptsikevich stated in an email to CoinDesk. “The real test lies just above $115K, where the 50-day moving average sits. Maintaining a position above this threshold would signal a return to optimism, although Bitcoin is currently trailing equities at record highs.”
Market Sentiment and Options Activity
Options desks indicate an increased demand for protective positions ahead of the impending U.S. inflation data, which aligns with a neutral-to-bearish outlook for Bitcoin in the short term. This cautious sentiment among traders may reflect uncertainties surrounding upcoming macroeconomic indicators that could impact the broader cryptocurrency market.
Solana’s Growth and Future Projections
Meanwhile, Solana (SOL) has been witnessing a steady rise in total value locked (TVL), reaching a record $12.2 billion—an impressive 57% increase since June. Analysts have been floating speculative targets of $300 for SOL, attributing this optimistic outlook to sustained on-chain activity and liquidity. However, achieving such targets will likely depend on the overall risk appetite of investors in the cryptocurrency space.
Inflation Data: A Crucial Catalyst
The macroeconomic calendar remains a potential spoiler, particularly with the U.S. Consumer Price Index (CPI) figures set to be released later on Thursday. Should the data indicate a cooler inflation trajectory, it would bolster arguments for a near-term Federal Reserve rate cut, which typically supports Bitcoin and the broader cryptocurrency ecosystem. As traders await these crucial economic indicators, the market remains poised for potential volatility.
For those looking to invest in Bitcoin or other cryptocurrencies, understanding market trends, technical analysis, and macroeconomic factors is essential. If you’re new to cryptocurrencies and want to learn how to buy Bitcoin, or how to buy Ethereum, be sure to check out our guides for step-by-step instructions. For those interested in Solana or XRP, we also have dedicated articles on how to buy Solana and how to buy XRP.
Conclusion: Navigating the Crypto Landscape
As we move through a pivotal moment for Bitcoin and the broader cryptocurrency market, staying informed with real-time updates and analytical insights is imperative for traders and investors alike. With Dogecoin leading the charge, Bitcoin’s price hovering around $114K, and other altcoins gaining momentum, the stage is set for an intriguing close to the trading week.
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