Bitcoin Whales Position for Potential H2 Rally Amid Volatility

The current market conditions, characterized by extreme fear and geopolitical tension between Iran and the U.S., have led to a 4% intraday dip in the total crypto market cap. This decline has resulted in $100 billion being erased from the market value, with 70% of these outflows originating from Bitcoin.

However, on-chain metrics reveal that the number of addresses holding over 100 BTC has reached a record high. This trend is significant, as it suggests that whales are using volatility as an entry point and positioning themselves for a potential H2 rally.

The current setup shows how liquidity directly impacts sentiment. The recent surge in the U.S. M2 money supply to an all-time high of $22.45 trillion appears to have counteracted the effect of Tether's market cap dropping over $3 billion since mid-January, coinciding with Bitcoin's nearly 35% correction.

DeFiLlama shows $1 billion in new stablecoin liquidity this week, pushing the market cap back near $310 billion and highlighting a clear link between liquidity, stablecoin inflows, and whale positioning. This sets the stage for a possible H2 rally, as high liquidity is likely to drive the market higher once sentiment shifts back to risk-on.