In the past month, Bitcoin has surged 16%, with a 3.3% increase in the last week alone. As of now, Bitcoin trades at $109,031**. A groundbreaking analysis suggests Bitcoin could hit **$135,000 by July 2025, fueled by its historical correlation with the US M2 money supply.
Understanding Bitcoin’s Link to M2 Money Supply
Crypto analyst Wise Advice revealed a compelling connection between Bitcoin’s price trajectory and the US M2 money supply. M2 encompasses:
- Physical currency
- Checking deposits
- Savings accounts
- Money market securities
When M2 expands, it indicates increased liquidity, often channeled into high-risk assets like Bitcoin. Historically, Bitcoin’s price mirrors M2 trends with a 10-12 week delay.
Key M2 and Bitcoin Movements
- Recent M2 Growth: A 2.7% rise (from $107.5T to $110.72T) preceded Bitcoin’s current rally.
- October 2024: M2 peaked, followed by Bitcoin’s $109K peak (~90 days later).
- April 2025: M2’s January decline coincided with Bitcoin’s drop to $74K.
Bitcoin Price Forecast
At $109K**, Wise Advice projects a **24% surge** to **$135K by July 2025. This uptrend may also ignite rallies in altcoins.
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FAQ Section
Q: What is the M2 money supply?
A: M2 includes cash, checking/savings deposits, and money market funds, reflecting overall financial liquidity.
Q: Why does Bitcoin correlate with M2?
A: Bitcoin often tracks M2 trends with a 10-12 week lag, as excess liquidity flows into speculative assets.
Q: What’s the highest Bitcoin could reach in 2025?
A: While $135K is predicted via M2 analysis, some models suggest $250K–$325K based on adoption and halving cycles.
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