The value of Bitcoin has experienced significant growth recently, marking an impressive rise over the past months. The cryptocurrency saw a 16% increase this past month and a 3.3% rise over the last week. These upticks have pushed Bitcoin’s price over the $109,000 threshold. Some researchers forecast that Bitcoin could escalate to $135,000 by July, with its trajectory closely linked to fluctuations in the M2 money supply. This correlation indicates that Bitcoin’s price lags behind rising liquidity by a few weeks.
How Does M2 Influence Bitcoin Pricing?
The M2 money supply, an extensive measure that includes cash, deposits, and money market funds, rose incrementally by 2.7%, as reported by the U.S. Federal Reserve. This monetary expansion signals a higher risk willingness among investors. Bitcoin, alongside various altcoins, swiftly responds to M2-induced changes.
Wise Advice, a cryptocurrency expert, noted, “Since 2023, Bitcoin has shown a delayed response of 10 to 12 weeks following changes in M2.” As an example, M2 peaked in October 2024, and approximately three months later, Bitcoin’s value reached $109,000 in January 2025. The reverse pattern occurred when M2 fell in January, leading to Bitcoin’s descent to $74,000 in April.”
Will Bitcoin Soon Hit $135,000?
This predictive model suggests that Bitcoin’s value could appreciate by 24% in the coming eight weeks, potentially reaching $135,000. Such an increase would further strengthen the ongoing macro liquidity, aided by recent spot ETFs. However, this market sentiment could force investors to decide whether to cash in or invest further.
This potential rally isn’t confined to Bitcoin alone. Historically, the influx in liquidity tends to invigorate the entire altcoin market, setting off a cascade of investment.
Experts recall the altcoin surge of late 2021, speculating a similar trajectory could ensue, particularly with high-beta altcoins experiencing pronounced trading volumes.
– Bitcoin’s forecasted rise to $135,000 by July is contingent on M2 trends.
– Rapid liquidity increases typically catalyze activity in the altcoin sector.
– Investors face strategic choices amid an optimistic cryptocurrency outlook.
As liquidity continues to rise, the cryptocurrency sphere braces for potential gains. Investors appear poised to capitalize on the evolving market conditions, mindful of past trends and possible future trajectories indicated by the M2 supply and its effect on asset valuations.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/bitcoin-climbs-as-liquidity-surges