Bitcoin Price Rebound? Binance Volume Surge and Fed Liquidity Spark Bullish Outlook

Bitcoin's recent price dip below $113,000, following President Trump's nuclear threat, has fueled discussions about a potential peak in the current cycle. However, on-chain analyst Amr Taha presents a bullish counterargument, focusing on two key factors. Firstly, Binance, the world's largest cryptocurrency exchange, witnessed a significant surge in daily Bitcoin spot volume, exceeding $7.6 billion. Historically, such volume spikes have often preceded local bottoms or significant price reversals, suggesting renewed investor demand. This surge coincided with Bitcoin's price drop, indicating potential trader repositioning and increased volatility. Secondly, the US Federal Reserve's net liquidity saw a substantial increase, jumping from $6 trillion to $6.17 trillion. This rise in net liquidity, a key driver for risk assets like Bitcoin, implies more fiat money circulating in the system, potentially flowing into cryptocurrencies and other risk-on assets. Historically, increases in the Fed's net liquidity have correlated with bullish market shifts. The combination of increased Binance volume and higher Fed liquidity, according to Taha, creates a strong case for Bitcoin's continued bullish momentum. Despite the recent price decline to around $112,600, representing a 1% drop in 24 hours, this analysis suggests a potential for Bitcoin to revisit former highs in the near term. The analyst's perspective contrasts with the prevailing market uncertainty, offering a compelling bullish outlook based on concrete market data and macroeconomic indicators.

(Source: https://www.newsbtc.com/news/bitcoin/bitcoin-analyst-builds-btc-bullish-case-on-binance-volume/)