Weakening US Dollar, Increasing Money Supply Could Fuel Bitcoin Price Rally in 2025

The Bitcoin price rally in 2025 is mainly driven by three main factors: a weakening US dollar, increasing global money supply, and market optimism following Donald Trump’s victory in the US presidential election.

First, the forecast suggests that the US dollar (DXY) is likely to weaken, which often leads to investors seeking alternative stores of value, such as Bitcoin. According to analysts, the decline in DXY will support Bitcoin prices as investors move away from riskier assets to Bitcoin.

Second, the global M2 money supply is predicted to increase significantly in 2025, potentially rising to over $127 trillion from the current $107 trillion. History shows that an increase in M2 money supply is positively correlated with Bitcoin prices, as more investors seek a hedge against inflation.

Finally, Trump’s victory raises hopes for a more favorable regulatory environment for cryptocurrencies, which could boost investor confidence and drive capital inflows into the digital currency market. Together, these factors create a strong outlook for Bitcoin prices in 2025, with some predicting prices could reach $132,000.