Forecasts say Bitcoin could receive as much as $2 trillion in new capital in 2025. This has been driven by expectations that the global money supply will increase massively, possibly by almost $20 trillion (to $127 trillion) from its current $107 trillion.
In a recent report, Real Vision chief crypto analyst Jamie Coutts predicted that the U.S. Federal Reserve’s move to expand the global money supply by about $20 trillion, a necessary step amid continuing economic liquidity shortages, will leave no one unchanged. The projected 18% increase in global liquidity will drive Bitcoin cash prices in the coming years.
Coutts noted that historical trends suggest Bitcoin captures roughly 10% of the money put into the global economy. If this pattern holds, there’s a pretty good chance that global liquidity will help Bitcoin grow to a whopping $2 trillion.
Part of that increased flow of capital to Bitcoin would happen at the same time as the more general growth of the global M2 money supply, which is cash and short-term bank deposits in the U.S., Coutts wrote in a November 28 post on X (formerly Twitter).
“Global M2 bottomed at $94T in Q4 2022 and has since climbed to $105T. During this period, Bitcoin’s market cap 5x’ed, adding $1.5T. In other words, 10% of the new money supply has leaked from the fiat system into the emerging global reserve asset of Bitcoin…”
Bitcoin price growth is expected to be circular. 2025 is the safest period, as your M2 money supply should peak around January 26, 2026. Coutts also wonders if this liquidity surge with institutional adoption could take Bitcoin’s price to new all-time highs.
Bitcoin’s Rally Could Take It to as High as $150,000 or More
Bitcoin’s price is set to rise higher due to the influx of liquidity for the 2025 cycle, with Bitcoin traders predicting the cryptocurrency will reach up to $150,000. This is due to growing monetary debasement and institutional interest in Bitcoin, points out Coutts, which has blown the traditional investments out of the water, producing more than 113% annual returns in the past.
As expected by Ryan Lee, chief analyst at Bitget Research, Bitcoin could see this price rise within six to nine months due to a growing money supply and rising participation from institutional investors.
Others, including VanEck, a colossal global asset management firm, are more ambitious, claiming that Bitcoin could exceed $180,000 by the beginning of 2021 powered by broader market optimism, including potential political triggers like a Donald Trump return to the White House.
However, the short-term outlook for Bitcoin remains difficult to pin down as the cryptocurrency continues to encounter resistance. According to data from CoinGlass, Bitcoin could face a major bump at around $98,300. Should the price rise above this, over $1.04 billion worth of leveraged short positions across all exchanges will be liquidated.
However, the prevailing mood remains bright, as Bitcoin’s growing institutional adoption and its standing as a hedge against inflation should only increase its appeal to retail and institutional investors.
The combination of Bitcoin and a global economic environment projected to have increasingly more liquidity and potentially weaken fiat currencies could make Bitcoin a store of value, setting the cryptocurrency up for breakout growth over the next few months.
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