Was this newsletter forwarded to you? Sign up here

📈🚀 Bitcoin's $111K High: Money Printer Go Brrr?

Well, here we are on a Wednesday, and it feels like the crypto market is humming with a quiet but profound shift. We're seeing Bitcoin display some remarkable resilience and strength in the face of broader macroeconomic changes, a clear sign that it’s carving out a unique role in the global financial landscape.

Today's sentiment is largely bullish, driven by compelling data points that suggest a significant shift in how capital is flowing. While there might be some daily wiggles, the underlying currents are strong, pointing to a future where digital assets are increasingly integrated into mainstream finance. Let's dive in and see what's truly moving the needle today.

🔍 Quick Overview

• Bitcoin's Resurgence: Bitcoin hit a fresh $111k all-time high, outperforming traditional markets and proving its mettle, like a seasoned runner pulling ahead of the pack.

• Liquidity Floodgates: The U.S. money supply hit a three-year high, signaling "money printing is back" and creating a bullish tide for Bitcoin, making it the asset most sensitive to this new liquidity.

• Supply Squeeze: Bitcoin's available supply on exchanges and OTC desks is at historic lows, creating a classic "more fiat chasing fewer coins" scenario, a supply-demand dynamic that pushes prices up.

• Corporate Crypto Rush: From GameStop to Trump Media, more public companies are adding Bitcoin to their balance sheets, alongside billions in ETF inflows, proving Wall Street is now well and truly in the game.

• Bitcoin's Dominance: Bitcoin's market cap dominance consolidates above 64%, while altcoins like Ethereum and Solana struggle to break resistance, cementing its position as the market's undisputed leader.

Trending News

💰 Trump's Bitcoin Plan: How the US Could Get More Crypto

David Sacks, Trump's crypto policy advisor, outlined plans to expand the U.S. Strategic Bitcoin Reserve beyond its current 200,000 BTC. The administration is exploring budget-neutral ways to acquire more Bitcoin, potentially through revaluing gold certificates or government program surpluses. This initiative signals a strong pro-crypto stance, including boosting U.S. Bitcoin mining and advancing crypto legislation.

⚔️ IMF vs. El Salvador: Bitcoin Battle Brews, Bukele Won't Stop

The International Monetary Fund (IMF) is actively working to prevent El Salvador from accumulating more Bitcoin, despite a $1.4 billion loan agreement. President Nayib Bukele, however, has publicly defied the IMF, stating his intention to continue purchasing Bitcoin and highlighting the country's profits from its holdings. This sets up a direct conflict between a sovereign nation's digital asset strategy and traditional financial institutions.

💼✅ Labor Dept. Softens Stance on Crypto in 401(k)s

The U.S. Department of Labor has relaxed its previous cautionary guidance on including cryptocurrency in 401(k) retirement plans. This shift grants retirement plan fiduciaries more flexibility to consider digital asset investments, aligning with a broader trend of softened regulatory approaches from other federal agencies. The decision empowers plan managers to evaluate crypto as a legitimate investment option.

📈🔍 SEC Eyes XRP ETF: Could Crypto Investment Get Easier?

The U.S. SEC has formally initiated a review of the WisdomTree XRP Trust, marking the first proposed spot XRP ETF under official consideration. The SEC is seeking public comments on the ETF's design, particularly concerning market manipulation and investor safety. Ripple maintains that XRP should not be classified as a security, advocating for clearer regulatory definitions.

Beyond the Noise

Bitcoin has truly demonstrated its mettle, reaching a new all-time high of $111,000 and showing persistent strength. This isn't just a lucky break; it’s happening amidst some fascinating macro shifts. We’ve seen the US Money Supply hit an all-time high in April for the first time in three years, signaling that, as some folks put it, "money printing is back." What does this mean for Bitcoin? Well, Bitcoin is famously sensitive to global liquidity, meaning when more money is sloshing around the system, it tends to find its way into assets like BTC.

Adding to this bullish cocktail is a classic supply-and-demand squeeze. The amount of Bitcoin available on exchanges is hitting a new all-time low, and there's a rapidly decreasing supply on OTC desks too. Think about it: fewer and fewer Bitcoin available for sale, precisely when central banks are firing up those money printers. This creates a powerful dynamic where "more fiat is chasing fewer coins," which, in turn, necessitates a rise in Bitcoin's price. We've seen this play out a few times in Bitcoin's history, and it never gets less exciting, does it?

This strength has translated into some impressive outperformance. Since the April lows, Bitcoin is up a whopping 26%, easily outshining the S&P 500 (up 12%) and the Nasdaq 100 (up 16%). It’s almost as if Bitcoin has front-run traditional markets, entering a consolidation phase while the S&P 500 is still 4% below its own all-time high. There's even a fascinating 97% correlation being observed between the current market environment and the late 1990s, specifically tracking the '98 correction. This suggests that when sentiment gets "max bearish" and liquidity improves, V-shaped recoveries are often born.

Yet, despite all this bullish news, Bitcoin has been consolidating within a narrow 5% range between $106,600 and $111,700 since May 22. This pause in momentum gives us a moment to reflect. Consider the record $7.24 trillion sitting in money market funds. That's a massive pile of "dry powder" indicating investors remain risk-off due to high rates. But upon a Fed rate cut, that cash could easily rotate into risk assets like Bitcoin, providing another significant boost.

Building on this macro narrative, the sheer volume of institutional and corporate adoption is truly eye-opening. We're seeing major Wall Street players like Cantor Fitzgerald debut a $2 billion Bitcoin lending business. Strive Asset Management, tied to Vivek Ramaswamy, just raised $750 million for a Bitcoin purchase. Even Trump Media is making waves, announcing a $2.5 billion offering specifically for a corporate Bitcoin treasury. Imagine that – a public media company making such a bold move! And don't forget GameStop, which officially added 4,710 Bitcoin to its balance sheet, worth roughly $513 million.

The Spot Bitcoin ETFs continue to see impressive inflows, with a daily net flow of $385.4 million and cumulative net flows now topping $44.88 billion, holding approximately 1.20 million BTC. BlackRock, for instance, has been bidding heavy, with another $323 million in a single day. This steady, strategic buying by institutions feels like they're "dollar cost averaging in with their billions." It’s also worth noting MicroStrategy (MSTR) has been on a tear, up 45% this month compared to Bitcoin's 6%, showcasing the incredible leverage some of these corporate plays offer. Bitcoin’s market cap dominance is now consolidating above 64%, underscoring its growing influence.

This Caught My Eye:

Here’s a breakdown of the chart:

• Stablecoin market cap hits $247B, climbing +$2.83B this week — marking one of the largest weekly inflows of the year and signaling renewed capital rotation.

• FTX repayments loom: With over $5B in stablecoins set to be distributed May 30, nearly 2% of total supply will re-enter circulation, potentially impacting liquidity and volatility.
  

Looking Ahead

So, as we reflect on this Wednesday, the core narrative is clear: Bitcoin is demonstrating significant market strength and resilience, driven by the macro backdrop of increasing global liquidity and a compelling supply squeeze. This, coupled with the undeniable surge in institutional and corporate adoption, is fundamentally reshaping the market. We're witnessing big names and public companies making substantial commitments to Bitcoin, a trend that continues to gain momentum.

Looking ahead, the market is navigating a period of consolidation, which is often healthy after a strong rally. The massive amounts of capital sitting in money market funds represent a powerful potential catalyst, waiting for the right signal, perhaps a Fed rate cut, to rotate into risk assets. Keep an eye on upcoming economic data, like the US GDP report on May 29th, and the SEC's Crypto Task Force Roundtable on DeFi on June 6th, as these events could certainly influence the regulatory landscape and market sentiment.

It’s easy to get caught up in the daily movements, the small dips and gains, or the dramatic headlines. These moments can feel all-consuming when you're in them. But stepping back, it's worth remembering that all market conditions, whether soaring highs or challenging pullbacks, are temporary. They are phases that the market moves through. The important thing is to stay informed about the underlying developments, understand the forces at play, and keep a steady perspective. The building continues, the adoption grows, and the journey, regardless of the immediate weather report, moves forward. Stay watchful, stay informed, and as always, stay curious.

Until tomorrow,
- Dr.P