Key Takeaways
Why is Bitcoin stable near $110,000 even as leverage drops?
As speculative bets have disappeared, strong spot market demand and rising stablecoin liquidity are keeping prices steady.
Why is China’s $47 trillion money supply so important?
Because liquidity from China could fuel Bitcoin’s next big rally.
Bitcoin [BTC] It seems like it’s slowing down, but there’s more.
Yes, the price cools to almost $110,000. But the number of loans is declining, liquidity is piling up and the flow of money around the world is shifting. If the next big wave of capital doesn’t come from Wall Street, it may come from the East.
And that shift could determine where BTC goes next.
The leverage has been removed
Bitcoin’s fixed price around $110,000 may worry traders, but… don’t be quick to judge!
Source: CryptoQuant
Since September, Open Interest on the major Futures exchanges has fallen. This meant that the leverage was washed away without any major price drop.
This is important because it shows that the speculative surplus has been eliminated while spot demand has supported the price.
Source: CryptoQuant
Additionally, the Spent Output Profit Ratio (SOPR) hovered around 1.0, confirming that traders were selling at cost rather than at panic levels. Market participants appear to be holding firm rather than chasing short-term gains.
Meanwhile, total Stablecoin supply rose to $158.8 billion, showing that sidelined liquidity is waiting to be deployed.
And on that note…
Chinese liquidity surpasses the US
Chinese M2 money supply has surpassed $47 trillionwhile the US was worth almost $22 trillion – a $25 trillion gap!
Source: Alpharactal
This is a structural difference and did not arise overnight.
Since the 2009 financial crisis, China has relied on aggressive credit expansion to keep growth and exports going. The US slowed its expansion after 2021, but China continued to pump liquidity into its system.
That difference is now visible in the data and in the markets.
So far, Bitcoin has evolved closer to China’s liquidity curve than America’s. The bigger story here is that the divide has never reversed since 2009!
If liquidity is fuel, will the East rise?
Global markets still anchor every story on the Fed, but the charts show that Chinese liquidity was just as important. Equities and crypto have often reacted more to marginal liquidity from China.
Source: Alpharactal
So if the next wave of injections comes from Beijing instead of Washington, market leadership could shift. Crypto (especially BTC) is one of the most sensitive global liquidity barometers.
More money circulating in China could give markets a hidden boost. This is one that US analysts don’t really take into account.
As capital turns east, crypto could become one of the first markets to price it in!