China’s $47T liquidity surge could be Bitcoin’s secret weapon! Here’s why
**Why is Bitcoin Steady Near $110K Even as Leverage Drops?**
Bitcoin’s price has been holding steady near the $110K mark, despite a noticeable decline in leverage across the market. What’s behind this resilience? The answer lies in a combination of factors: speculative bets have largely disappeared, yet strong spot demand and rising stablecoin liquidity are keeping prices firm.
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**Bitcoin [BTC] Looks Like It’s Slowing Down — But There’s More Beneath the Surface**
At first glance, Bitcoin’s recent price behavior might seem lackluster, as it cools off near $110K. However, the story goes beyond just price action. Borrowing and leveraged positions are decreasing, liquidity is accumulating, and the global flow of money is shifting significantly.
If the next major capital wave doesn’t come from Wall Street, it might emerge from the East — a trend that could ultimately define Bitcoin’s next big move.
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**Leverage Has Been Cleared**
Bitcoin’s flat price near $110K might make some traders nervous, but there’s a silver lining. Since September, Open Interest on major futures exchanges has declined substantially. This means that leverage and speculative excess have been flushed out without triggering a major price breakdown.
This is a crucial development because it shows speculative hype is gone, yet spot demand remains strong enough to support current levels. Supporting this observation, the Spent Output Profit Ratio (SOPR) has hovered around 1.0, indicating that traders are selling close to their cost basis rather than liquidating in panic.
Market participants seem to be holding steady instead of chasing quick profits. Meanwhile, total stablecoin supply has risen to $158.8 billion, signaling that a significant amount of sidelined liquidity is waiting to be deployed.
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**China’s Liquidity Overtakes the U.S.**
One of the most important global macro factors impacting Bitcoin is China’s massive money supply. China’s M2 money supply has surpassed $47 trillion — more than double that of the U.S., which stands near $22 trillion. This $25 trillion gap is a structural difference that didn’t appear overnight.
Since the 2008 Global Financial Crisis, China has maintained aggressive credit expansion to sustain growth and boost exports. Meanwhile, the U.S. slowed monetary expansion after 2021, but China continued injecting liquidity into its system.
This divergence is now clear both in data and market trends. Notably, Bitcoin’s price movements have tended to follow China’s liquidity curve more closely than America’s. Even more striking—the gap between China’s and the U.S.’s money supply has never reversed since 2009.
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**If Liquidity Is Fuel, Is the East Set to Rise?**
Much of the global market narrative remains anchored to the Federal Reserve’s policies, but in reality, China’s liquidity has been equally influential. Stock markets and cryptocurrencies have often reacted more strongly to changes in marginal liquidity coming out of China.
If the next wave of liquidity injection originates from Beijing instead of Washington, we could witness a major shift in market leadership. Cryptocurrency, especially Bitcoin, is one of the most sensitive barometers for global liquidity. Increased money movement within China could quietly give markets a significant boost—one that many U.S.-based analysts aren’t fully accounting for.
Should capital rotate towards the East in a meaningful way, crypto could be one of the first markets to price in this historic shift.
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**In Summary**
– Bitcoin remains steady near $110K despite dropping leverage because speculative bets have been cleared out.
– Strong spot demand and growing stablecoin liquidity are supporting price levels.
– China’s vastly higher money supply compared to the U.S. represents a critical, often overlooked source of potential liquidity.
– Bitcoin’s price movements have aligned more closely with China’s liquidity trends than the U.S.’s.
– A shift in liquidity focus from the West to the East could drive Bitcoin’s next major rally and reshape global market dynamics.
Stay tuned—Bitcoin’s story is far from over.
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