Bitcoin reached a record high this week, but Ethereum is also seeing a major resurgence. In fact, the altcoin may be quietly positioning itself for a significant rally as global liquidity continues to expand, according to new market analysis.<\/p>\n
The US M2 money supply, which is an important measure of liquidity, has climbed to a record $22.2 trillion after entering a renewed expansion phase over the past three years.<\/p>\n
In its latest analysis, CryptoQuant explained<\/a> that Bitcoin has already reflected this surge as it gained more than 130% since 2022 and has shown an unusually strong correlation of about 0.9 with M2. Ethereum, on the other hand, has risen only 15% in the same period, which is being described as a \u201cliquidity lag.\u201d<\/p>\n Despite this, on-chain data indicates that the gap may be narrowing. Exchange reserves for ETH have dropped to roughly 16.1 million, down more than 25% since 2022. This is a sharp reduction in selling pressure. Consistently negative netflows mean that investors are moving Ethereum into self-custody or staking contracts, which also points to tightening supply.<\/p>\n Meanwhile, the Coinbase Premium Index has flipped back into positive territory, amidst renewed interest from US institutions. CryptoQuant found that similar conditions in 2020 and 2021 preceded major Ethereum price surges.<\/p>\n Previous instances show that Ethereum tends to trail Bitcoin during the early stages of monetary easing cycles, but once BTC dominance falls below 60%, capital often rotates into altcoins, which drives gains in the ETH\/BTC ratio. That trend now appears to be resurfacing, which hints that 2025 could represent a transformation from Bitcoin-led rallies to broader altcoin participation.<\/p>\n As such, Ethereum could realign with M2 growth, thereby pushing toward higher valuations if global liquidity expansion, as well as the structural decline in exchange reserves, continues. In such a scenario, the $10,000 target for ETH would not represent speculative excess but rather a natural result of liquidity rotation within the crypto market.<\/p>\n \u201cQuietly but steadily, the next liquidity wave may already be lifting Ethereum beneath the surface.\u201d<\/p>\n The long-term view aligns with a perspective recently shared<\/a> by Alphractal\u2019s founder, Joao Wedson, who said that the immediate breakout of the crucial $5,200 level could trigger one of the fastest rallies in the asset\u2019s history.<\/p>\n Institutional flows are already fueling confidence, as spot Ethereum ETFs purchased<\/a> nearly $1.3 billion worth of ETH. BlackRock dominated the buying spree and accounted for over half the total with $691.7 million in purchases.<\/p>\n The post Why Ethereum (ETH) Could Be the Biggest Winner of the Global Liquidity Surge<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Bitcoin reached a record high this week, but Ethereum is also seeing a major resurgence. In fact, the altcoin may be quietly positioning itself for a significant rally as global liquidity continues to expand, according to new market analysis. The US M2 money supply, which is an important measure of liquidity, has climbed to a […]<\/p>\n","protected":false},"author":0,"featured_media":102458,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-102457","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/102457"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=102457"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/102457\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/102458"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=102457"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=102457"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=102457"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Lightning Rally If $5,200 Breaks<\/h2>\n