**Liquidity Expansion + Derivatives Suppression Removal, Bitcoin Price Discovery Mechanism Reboot Imminent**

Recently, the structure of Bitcoin's price has been undergoing a subtle yet significant change. As the macro liquidity environment continues to improve, the US M2 money supply has expanded for 21 consecutive months, reaching a record high of $22.3 trillion, a year-over-year increase of 4.3%. Even after adjusting for inflation, the real M2 still maintains a 1.5% YoY growth, and has been rising for 15 consecutive months. This long-term trend of fiat currency dilution is building a new fundamental support for crypto assets.

But the real turning point lies in the **official end of derivatives suppression**.

According to the latest analysis by Negentropic, co-founder of Glassnode, a Bitcoin options expiry event worth $23.6 billion has just occurred, marking the clearing of the "derivatives squeeze" that had been dominated by hedging behavior in the market for the past few weeks. Prior to this, mechanical hedging operations by derivatives traders had been artificially suppressing the upward trend—whenever the spot price rose, hedge orders would automatically trigger, forming an invisible ceiling.

With this options expiry, this suppression is now lifting. **Bitcoin is no longer "pinned" by derivatives**, and the price structure is gradually detaching from the interference of hedging activities, beginning to be driven by genuine market supply and demand. Put simply, the price discovery mechanism is returning, and the market’s upward bias is gradually strengthening.

From a technical perspective, recent pullbacks have continued to be supported by buying interest, with previous lows remaining intact, and the overall trend showing constructive characteristics. Coupled with macro liquidity improvements and the release of derivatives pressure, Bitcoin is simultaneously eliminating resistance from both micro and macro factors.

**The key is that fiat currency dilution has not stopped, and derivatives suppression has been lifted—new favorable conditions are forming.**