Bitcoin Surges Past $110K: Key Drivers Behind Crypto Market Revival

Bitcoin's price soared to a three-week high on July 3, breaching the $110,000 threshold amid expanding global money supply (M2), which hit a record $55 trillion. The rally saw Ethereum and altcoins showing bullish momentum.

Market analyst Rachel Lucas from BTC Markets noted the delayed but inevitable flow of macroeconomic liquidity into risk assets like cryptocurrencies. "While not instantly impactful, these funds eventually fuel crypto markets," Lucas explained, emphasizing the need for a "sustained catalyst" - potentially from Fed rate clarity or ETF inflows - to propel prices to new all-time highs.

Spot Bitcoin ETFs recorded their first outflow in 15 days on July 1, signaling potential investor caution, only to rebound with record inflows the following day that boosted Bitcoin's price. Additional bullish factors include:
- U.S.-Vietnam trade agreement expanding market access
- Ripple's federal banking license application
- Renewed expectations for Fed rate cuts

Technical analysts highlight significant indicators:
- Bitcoin volatility at 2023 lows typically precedes major price movements
- MACD indicator shows bullish crossover
- Potential breakout could target $137,000

Ethereum gained 8% in 24 hours, crossing $2,600. Grayscale's Zach Pandl predicts altcoins will outperform: "With regulatory clarity improving, traditional finance capital may increasingly flow into altcoins."

CryptoQuant's Carmelo Aleman reported institutional accumulation addresses holding 22.75M ETH (a 36% monthly increase), with liquid staking reaching a record 35.56M ETH. At current prices, these positions show 23% unrealized gains.