The chart predicts Bitcoin’s price reaching $132,000 by 2025, driven by a projected 18% increase in the global M2 money supply. The M2 supply represents a measure of global money liquidity, including cash, checking deposits, and easily convertible near money. This anticipated surge is attributed to expected liquidity injections by central banks, especially the Federal Reserve, in response to economic pressures.
Historically, Bitcoin’s price has shown a correlation with the global M2 supply due to its role as a hedge against fiat currency devaluation. As more money is printed or injected into the economy, the purchasing power of traditional currencies decreases, increasing demand for Bitcoin as a scarce digital asset.
This projection aligns with Bitcoin’s historical growth patterns during periods of rising global liquidity, emphasizing its potential as a store of value in the long term.