While Bitcoin’s rise, which started in November, is expected to continue, Jamie Coutts, an analyst at Real Vision, stated that with the monetary expansion expected to take place next year, Bitcoin’s value could increase by $2 trillion. With the US’s debt exceeding $36 trillion and the end of monetary restrictions, the world’s largest economy is expected to add trillions of dollars to its M2 money supply by 2025. M2 supply, which is around $107 trillion today, could increase to $127 trillion by 2025 with the US’s contribution.
Jamie Coutts, an analyst at Real Vision, founded by Raoul Pal and author of many publications on the cryptocurrency market, stated that this potential increase in liquidity would present a great opportunity for Bitcoin.
Coutts emphasized that the global M2 supply, which was at $94 trillion in 2022, has now increased to $107 trillion, and the price of Bitcoin has increased fivefold during this increase. Coutts said:
"The global M2 supply was $94 trillion in the fourth quarter of 2022, but today it has increased to $107 trillion. In this process, the Bitcoin price has increased fivefold. In other words, 10 percent of the growth in M2 supply has shifted to Bitcoin. If another $20 trillion increase occurs, $2 trillion of this could be reflected in Bitcoin. The dollar index may have peaked now. In addition, the Fed is expected to focus more on risky assets in 2025... This indicates that 2025 will be a bullish year for Bitcoin."
The US has implemented the harshest monetary tightening policy since 2001 in the last two years. Thanks to this tightening, inflation, which reached 9% in June 2022, has now been reduced to 2.6%. However, the fact that core inflation is still above 3% raises concerns among experts about whether the interest rate cut will continue.