**Why Is Bitcoin Steady Near $110K Even as Leverage Drops?**
Bitcoin [BTC] may look like it’s slowing down, with its price cooling near $110K, but there’s more happening beneath the surface. While speculative bets and borrowed leverage have diminished, strong spot demand and rising stablecoin liquidity are holding prices firm. Meanwhile, the global flow of money is shifting, and if the next major capital wave doesn’t come from Wall Street, it may come from the East—potentially defining where BTC heads next.
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### Leverage Has Been Cleared
Bitcoin’s flat price near $110K might worry some traders, but don’t be quick to judge. Since September, Open Interest across major Futures exchanges has dropped significantly. This indicates that leverage has been flushed out without triggering a major price breakdown.
Why is this important? It shows that speculative excess has been removed from the market, yet spot demand has remained strong enough to support the price.
Additionally, the Spent Output Profit Ratio (SOPR) has hovered near 1.0, confirming that traders are selling around their cost basis rather than panic selling at deep losses. Market participants seem to be holding steady rather than chasing short-term profits.
At the same time, total stablecoin supply has risen to $158.8 billion, indicating that sidelined liquidity is waiting on the sidelines, ready for deployment.
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### China’s Liquidity Overtakes the U.S.
One of the biggest stories in global financial markets is the massive liquidity gap between China and the United States.
China’s M2 Money Supply has now crossed $47 trillion, compared to around $22 trillion in the U.S.—a staggering $25 trillion difference!
This is not a recent development; since the Global Financial Crisis in 2009, China has relied heavily on aggressive credit expansion to fuel growth and exports. Meanwhile, the U.S. slowed its monetary expansion after 2021, but China has continued pushing liquidity into its financial system.
This divergence is now visible both in economic data and market performance. Notably, Bitcoin has tended to follow China’s liquidity curve more closely than America’s.
The bigger picture? This vast liquidity gap has never reversed since 2009.
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### Is the East Set to Rise?
Global markets often anchor their narratives around the U.S. Federal Reserve, but an important reality is that China’s liquidity matters just as much.
Crypto assets—especially Bitcoin—have often reacted strongly to marginal liquidity changes from China. Therefore, if the next wave of liquidity injection originates from Beijing rather than Washington, we could see a significant shift in global market leadership.
Bitcoin and the broader crypto market are among the most sensitive barometers for global liquidity. More money flowing through China could provide a hidden boost to these markets—something many U.S. analysts have yet to fully factor in.
If capital rotates toward the East, crypto might be one of the first asset classes to price this shift in, potentially marking the beginning of a new phase in Bitcoin’s trajectory.
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**In Summary:**
– Bitcoin’s stable price near $110K coexists with falling leverage and strong spot demand.
– Speculators have exited positions, removing excess risk, while stablecoin liquidity builds up.
– China’s enormous and growing money supply dwarfs that of the U.S., creating a major liquidity divergence.
– Markets, including Bitcoin, are historically more sensitive to China’s liquidity than the U.S. Fed’s actions.
– A shift in global capital flows toward China could fuel Bitcoin’s next major rally, signaling a potential change in market leadership.
Stay tuned as the landscape evolves—Bitcoin’s next big move may come with the rising tide of Eastern liquidity.
https://bitcoinethereumnews.com/bitcoin/chinas-47t-liquidity-surge-could-be-bitcoins-secret-weapon-heres-why/?utm_source=rss&utm_medium=rss&utm_campaign=chinas-47t-liquidity-surge-could-be-bitcoins-secret-weapon-heres-why