Why is Bitcoin’s price up today? $20M ETF inflows, China’s M2 supply & more...

Bitcoin [BTC] has maintained bullish momentum over the past day, rising by 1.28% and opening a candle above $110,000 for the first time since the 12th of October.

AMBCrypto analyzed the market to identify the key factors driving this momentum and what they could mean heading into the weekend.

Chinas liquidity push and institutional moves

Bitcoins recent surge appears linked to the growing M2 money supply in China.

The countrys M2 has continued to expand, recording a 0.87% increase over the past month, while global liquidity has fluctuated between $127 trillion and $128 trillion.

Rising liquidity suggests higher cash circulation in the Chinese market, which could flow into assets like Bitcoin.

The recent approval of a Solana [SOL] ETF in Hong Kong could also indicate growing investor readiness to deploy capital into digital assets, a move China may soon replicate.

Source: Alphractal

In the United States, institutional investors are also positioning themselves ahead of the weekend.

Data shows that U.S. spot Bitcoin ETFs saw a $20 million inflow this week, signaling renewed confidence. This comes as the U.S. M2 supply remains flat, with 0.0% growth recorded over the same period.

Market indicators signal accumulation potential

On-chain and off-chain indicators suggest that Bitcoins bullish setup remains intact. The Short-Term Holder Net Unrealized Profit/Loss (STH-NUPL) metric shows that Bitcoin has entered a cooling phase, indicating investor discomfort.

Historically, such stress among short-term holders often precedes accumulation phases and eventual price recoveries; a similar setup may now be forming.

Source: Glassnode

Bitcoins dominance has also risen by 1.57% in the past day, as of writing, reflecting renewed investor confidence.

A rising dominance typically means investors are reallocating funds from altcoins into Bitcoin, strengthening its position and setting the stage for a potential rally if momentum persists.

Resistance ahead

Source: Glassnode

As the week draws to a close, institutional traders are expected to retreat from the market, leaving retail investors to determine whether Bitcoins bullish momentum will hold.

At press time, retail participants appeared to be easing their buying activity, with data showing they sold approximately $48 million worth of Bitcoin today.

Should retail sentiment remain bearish, Bitcoins chances of a near-term rally appear limited.