Bitcoin (BTC USD) Fair Price Hits $250,000 Amid Rising Demand

Bitcoin (BTC USD), trading near $113,056, entered a “historically late phase” of its cycle. In recent Bitcoin news data according to Glassnode, on-chain insights point to profit-taking trends and slowing capital inflows.

Interestingly, those resemble patterns seen near the end of past bull runs. The data highlights striking similarities with the 2015–2018 and 2018–2022 cycles.

In both cases, all-time highs were set only two to three months after reaching a stage comparable to where Bitcoin stands today.

Meanwhile,  Global M2, a metric that measures global money supply signalled bullishness and positioned the Bitcoin (BTC) fair price at $250,000.

Bitcoin Price Prediction: Global M2 Surges, BTC Fair Price at $250K

Crypto pundit ZeroHedge spotlighted Global M2, a metric that measures global money supply, and its striking correlation with Bitcoin’s price action.

The chart reveals a powerful surge in global liquidity, one that has sharply accelerated in recent months.

Historically, Bitcoin (BTC USD) has tracked this liquidity with a noticeable lag, reflecting its sensitivity to shifts in the broader monetary landscape.

The green line, representing Global M2 with a three-month lead, has gone nearly vertical. In contrast, Bitcoin’s red line has flattened, failing to mirror the liquidity boom.

This divergence, highlighted on the far right of the chart, suggests that the cryptocurrency is currently undervalued relative to where global liquidity implies it should be trading.

Seasoned market watchers will recognize this pattern. Each time liquidity expands aggressively, risk assets, and especially Bitcoin, eventually play catch-up.

The delay can be frustrating for traders, but it often sets up outsized moves once the adjustment begins. If history repeats, the gap between liquidity and price could be a precursor to a significant rally.

At present levels, Bitcoin hovers near 112,000 on the chart’s scale, while liquidity implies a much higher BTC fair price.

ZeroHedge estimates that fair value near $250,000 is a logical extension of the chart’s alignment over the past 18 months.

However, Bitcoin has not yet reflected that tidal wave in its valuation. When it does, the move could be explosive in keeping with the aforementioned Bitcoin price prediction insights.

It would remind markets once again that Bitcoin remains tightly tethered to the flow of global money.

Bitcoin News: Data Confirms Bitcoin (BTC USD) Demand is High

Insights from CryptoQuant points to a sharp rise in demand. The youngest group of Bitcoin holders or wallets less than a month old turned net positive in September.

Their supply jumped by more than 73,000 BTC, a sign of renewed conviction from new entrants.

At the same time, short-term holders have been adding to their stacks. They accumulated roughly 159,000 BTC during the month, effectively absorbing the coins being sold by long-term holders.

This rotation between cohorts is a familiar feature of strong market cycles, where seasoned investors distribute while new and short-term participants step in.

Even so, not all signals are bullish in recent observations in Bitcoin news. Santiment’s onchain metrics warn that a quick rebound may not be in the cards.

Retail traders have rushed to “buy the dip,” a pattern that has often preceded more downside.

Meanwhile, short positions remain too modest to trigger the kind of squeeze that could flip momentum.

Meanwhile, Bitcoin (BTC USD) has pulled back nearly 9% from its recent high at $124,000. The decline comes as capital inflows have slowed noticeably.

Growth in BTC’s realized cap, a metric for tracking new money entering the market, topped out at 6% per month in recent weeks.

That’s less than half the 13% pace seen during the $100,000 breakout late last year. Profit-taking has also lost momentum.

Glassnode data shows that selling into strength at the most recent all-time high was far more muted than during earlier peaks at $70,000, $100,000, and $122,000.

Traders are cashing out, but nowhere near the volumes that marked prior tops. On the other hand, realized losses remain relatively contained.

Current levels sit near $113K per day, a figure that falls comfortably within the range of past corrections. In short, in terms of a near term Bitcoin price prediction, pullback looks more like a healthy breather than a full-scale reversal.