Bitcoin Surges Amid Fed Liquidity Shift, Geopolitical Tensions

Bitcoin's value is highly influenced by macroeconomic liquidity conditions, with recent positive changes in the U.S. money supply (M2) and sustained high bank reserves suggesting a potential surge in Bitcoin's price. Since its inception in 2009, Bitcoin has experienced remarkable growth and volatility, evolving from a niche digital experiment to a major financial asset with a market capitalization of $213 trillion in 2025. Despite geopolitical tensions, such as the Iran-Israel conflict and U.S. involvement, Bitcoin demonstrated resilience, briefly dropping below $100,000 before rebounding to over $107,000, underscoring its market dominance compared to altcoins, which have suffered steeper losses. The ongoing institutional interest is reflected in developments like Mastercard's partnership with Chainlink to facilitate crypto purchases for billions of users, signaling growing mainstream adoption. Meanwhile, the Altcoin Season Index indicates the market is currently in a Bitcoin Season, where Bitcoin outperforms most altcoins, highlighting capital flows favoring Bitcoin over smaller cryptocurrencies. Overall, Bitcoin's trajectory remains closely tied to liquidity trends, geopolitical events, and broader market cycles impacting crypto assets.