Bitcoin price surged past $120,000 this week, reigniting bullish sentiment across the crypto market. While many analysts expected a correction after months of strong gains, one hedge fund believes this breakout is just the beginning of something much bigger: a new Bitcoin liquidity supercycle.
In a recent report from Capriole Investments, the fund points to a confluence of monetary conditions and institutional flows as key drivers behind the current rally. Their thesis? Bitcoin’s rise isn’t just momentum—it’s structural.
$BTC Pushes Above $120K With Strength
Bitcoin has officially reclaimed its bullish trajectory, hitting $122,412 on Monday with strong volume and positive market breadth. As the daily chart shows, the recent breakout from the $115K–$117K zone marks the highest closing candle in over 14 months, suggesting a potential extension toward the $130K–$140K region in Q3.
Source: Tradingview
The asset had previously consolidated in a narrow range, but macro tailwinds and accelerating ETF inflows appear to have unlocked fresh demand. According to on-chain metrics, exchange balances are also declining, reinforcing the supply shock narrative.
Capriole: The Liquidity Tap Has Been Turned On
Capriole Fund’s latest update, titled The Bitcoin Liquidity Tap, suggests the current breakout was anything but random. Founder Charles Edwards highlights a “perfect storm” of macro liquidity, fiscal stress, and capital migration that’s boosting Bitcoin’s position as a safe-haven asset.
“Bitcoin Treasury Companies are now the funnel,” Edwards explains in the report, adding that the real momentum is coming from structurally increased liquidity in the financial system.
Capriole’s data-driven models argue that Bitcoin price is entering a new regime—one that mirrors past supercycles triggered by liquidity surges in 2012 and 2020. The current backdrop of global monetary easing, rising fiscal deficits, and ETF demand fits that pattern perfectly.
Key Factors Supporting the Supercycle Narrative
- Institutional Demand: Spot Bitcoin ETFs saw $1.18B in daily net inflows on July 10—one of the highest figures since launch. Smart money appears to be accumulating at a rapid pace.
- Liquidity Conditions: Global M2 money supply is trending upward again. Historically, such shifts have preceded major Bitcoin bull runs.
- On-Chain Strength: Bitcoin’s hashrate and wallet growth remain near all-time highs, showing that network fundamentals are aligned with price action.
These indicators, according to Capriole, support a multi-month trend rather than a short-lived pump. Their models estimate that if current liquidity conditions persist, Bitcoin could reach $180K–$200K before facing meaningful resistance.
Final Thoughts: Bitcoin Price and the Road Ahead
As bitcoin price continues to print higher highs, it’s becoming clear that institutional conviction is growing. With macro liquidity turning supportive and ETFs pulling billions into the ecosystem, Capriole’s supercycle thesis is hard to ignore.
That said, no uptrend is linear. Profit-taking, volatility, and external shocks will remain part of the journey. But if Capriole is right, the current cycle may be less about hype—and more about structural transformation in how capital flows into digital assets.
