Daily Discussion | BTC Surges Amid Spot ETF Success
Edited By
James O’Reilly
On May 18, 2025, people engaged in lively discussions about Bitcoin’s price movements and its connection to the spot ETF approval, showcasing the market's volatility and potential upcoming trends. These discussions come amidst notable trading swings, raising questions about sustainability and market dynamics.
Thread Highlights
The daily thread examined a myriad of topics, from technical analysis to trading strategies. Key observations revealed a strong correlation between Bitcoin (BTC) and the M2 money supply, with a noted 90% correlation over the past two months. As one commenter remarked, "BTC tracking M2 money supply with an 80-day lag 90% is beyond insane."
Also, post-spot ETF approval, average net inflows jumped to $123.5 million per trading day, indicating significant market interest after 494 calendar days since its launch. Yet, while inflows surged, concerns about external trading influences lingered. One user noted, "If we reach a point where buying/selling outside of spot ETFs is net neutral, equilibrium price would be much higher."
Market Sentiment in Focus
Market sentiments are mixed. Positive signs emerged with breakout narratives and price movements surpassing $105k. Comments reflected excitement, with one individual stating, "Looks like we have broken above the ascending triangle with decent weekend volume." However, some doubted the sustainability of these moves, suggesting a cautious approach moving forward.
"Sunday's just made to rinse out the degens, huh?"
Others expressed excitement about potential new all-time highs, asking pointedly whether BTC could disrupt major market caps like Amazon's. A user quipped, "C'mon, let’s really shake things up and say new ATH on a random low volume Sunday out of nowhere, how about it BTC?"
Key Insights
△ 90% correlation between BTC and M2 money supply indicates strong market dynamics.
▽ Daily inflows have reached $123.5 million, suggesting robust ETF interest.
※ "Liquidation heatmap shows decent quantity of shorts up to $106K," signaling possible volatility ahead.
The End
As discussions continue to unfold, everyone is watching how Bitcoin’s price will respond to these new inflow trends and market movements. Will BTC maintain its upward momentum, or are traders in for a bumpy ride? Only time will tell.
What's on the Horizon for Bitcoin?
There's a strong chance Bitcoin could experience further upward momentum in the coming weeks. With inflows consistently reaching $123.5 million per trading day, the demand for spot ETFs is likely to stimulate trading activity. Experts estimate around a 65% probability of Bitcoin surpassing the $110,000 mark if positive trading trends continue. However, the lingering concerns about external influences in the market could create volatility, suggesting that traders should remain alert for potential corrections. It’s a delicate balance: many are excited about new all-time highs, while others urge caution as rapid fluctuations can lead to sudden downturns.
A Look Back at the Gold Rush
Reflecting on the California Gold Rush in the 1850s offers an interesting parallel to Bitcoin's current trajectory. Both generated fierce interest and attracted wide-ranging speculation from all walks of life. Just as prospectors flooded to the West chasing their fortunes, today’s traders are diving into cryptocurrency markets fueled by hopes of high returns. However, many of those gold seekers faced harsh realities when market expectations were met with limitations in supply and unpredictable conditions. This historical analogy reminds us that while optimism can drive trends, the need for sound strategies and sensible risk management remains crucial.