Bitcoin could attract an additional $2 trillion in investments by 2025, fueled by expectations of increased global liquidity.
The United States Federal Reserve is projected to expand the global money supply to over $127 trillion in 2025, up from the current $107 trillion, an 18% increase, according to Jamie Coutts, chief crypto analyst at Real Vision.
“BTC projection to $132,000 on M2 money supply growth,” Coutts wrote, highlighting the potential impact of a $20 trillion liquidity injection on Bitcoin prices.
Historical trends suggest Bitcoin could capture about 10% of this new liquidity, translating to $2 trillion in fresh investments.
“Global M2 bottomed at $94T in Q4 2022 and has since climbed to $105T,” Coutts explained in a Nov. 28 X post.
“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.”
Coutts projects the global M2 money supply, which measures cash and short-term bank deposits, will peak on Jan. 26, 2026.
This monetary expansion could propel Bitcoin to new heights.
Bitcoin’s consistent 113% annual returns make it increasingly attractive to institutional investors, particularly during periods of monetary debasement.
Coutts suggests these factors could drive Bitcoin’s price as high as $150,000 during 2025.
Ryan Lee, chief analyst at Bitget Research, also predicts a potential peak between late 2024 and mid-2025, with price targets ranging from $118,928 to $150,000.
VanEck, an asset management giant, has an even more bullish outlook, forecasting Bitcoin prices exceeding $180,000 within the next 18 months, bolstered by growing market optimism.
However, in the short term, Bitcoin faces resistance above $98,300.
