Bitcoin Rally Ahead as Global M2 Hits $55.48 T?

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2025/07/03 11:15

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Global M2 liquidity expands to $55.48 trillion, fueling risk assets.
Bitcoin typically trails M2 surges by 1–6 months—targets $150K–$170K.
Weakening USD and institutional inflows may accelerate BTC rally.

The global M2 money supply has reached a new record of $55.48 trillion. M2 includes cash, checking and savings deposits, and other liquid assets. This spike in liquidity suggests more capital is available for markets, often boosting higher-risk investments like Bitcoin .

Historically, Bitcoin has shown a tendency to follow these money supply increases with a delay ranging from one to six months. Analysts believe this could position Bitcoin for a strong rally, particularly as financial conditions ease and capital flows into alternative assets like crypto.

How High Could Bitcoin Go?

With this influx of global liquidity, forecasts are turning bullish. Some financial institutions and market analysts expect Bitcoin to potentially reach between $150,000 and $170,000 in the coming months. This projection is based on patterns observed during previous M2 expansions, where Bitcoin surged significantly.

At the same time, the U.S. dollar has weakened, with the dollar index (DXY) dropping by over 10%. Historically, a weaker dollar correlates with a rise in Bitcoin’s value, adding another tailwind to the potential uptrend.

🚨 NEW: Global M2 money supply hits a new all-time high of $55.48T.

Will Bitcoin follow? pic.twitter.com/nTsJgETnB4
— Cointelegraph (@Cointelegraph) July 3, 2025

Institutional Support Strengthens the Case

In addition to favorable macro conditions, institutional involvement in Bitcoin continues to grow. With rising inflows into Bitcoin ETFs and increasing adoption by companies and investment funds, the foundation for a sustained rally appears more solid than in past cycles.

This environment—marked by record liquidity, a declining dollar, and growing institutional interest—offers Bitcoin a potentially strong setup for significant gains.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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