Crypto Markets Firm as Bitcoin Nears $114K, DOGE Leads Gains Amid M2 Tailwinds

Crypto markets edged higher Thursday morning, with Bitcoin climbing near $114,200 and Dogecoin posting strong daily gains, as broader liquidity trends hint at potential upside.

Bitcoin (BTC) traded around $114,200 in Asian hours, up 2.4% over the past 24 hours, while Ether (ETH) rose 2.4% to $4,400. XRP reclaimed levels above $3, BNB approached $900, and Solana (SOL) gained nearly 3%. Dogecoin (DOGE) outperformed, surging 5% intraday to extend its weeklong rally to 15.9%.

A growing number of traders are watching a key valuation signal. CF Benchmarks highlighted that Bitcoin currently trades below its fair value when compared to U.S. M2 money supply growth—a divergence as wide as any seen since August 2024. Historically, similar gaps in 2016, 2019, and 2021 marked strong entry points ahead of major rallies.

“Over the past decade, BTC has shown a positive correlation with M2 growth, with monetary expansion typically leading price by around three months,” CF Benchmarks noted. If history repeats, continued liquidity tailwinds could support a further upside push later in Q4.

Technically, bulls still face hurdles. “Bitcoin continues to attract buyers on intraday dips, forming a smooth but fragile uptrend,” said Alex Kuptsikevich, chief market analyst at FxPro. “The main battle is around $112K, while $115K, just above the 50-day moving average, remains the key test for sustained optimism. For now, BTC is lagging behind equities at record highs.”

Options markets indicate elevated demand for protection ahead of U.S. inflation data, signaling neutral-to-bearish short-term positioning.

Elsewhere, Solana’s total value locked (TVL) has climbed to a record $12.2 billion, up 57% since June, supporting its 3% price gain. Analysts eye $300 targets for SOL, linking upside to on-chain liquidity and sustained activity. Meanwhile, memecoins like DOGE are drawing fresh capital inflows as institutional and retail interest builds.

The macro calendar remains influential. U.S. CPI data, due later Thursday, could dictate near-term momentum. A cooler inflation print would bolster expectations for a Fed rate cut and a softer dollar, providing additional tailwinds for Bitcoin and the broader crypto market.