In the last 30 days, Bitcoin has seen a growth of at least 16%, with a 3.3% surge in just the past seven days. Currently, Bitcoin’s price sits at $109,031. A new research-based analysis predicts that Bitcoin could reach $135K by July 2025, driven by its correlation with the US M2 money supply.
The analysis, shared by crypto analyst Wise Advice, highlights the strong connection between Bitcoin’s price action and the US M2 money supply. M2 includes physical currency, checking deposits, saving accounts, and money market funds. When M2 increases, it signals more liquidity in the financial system, which often flows into risk assets like Bitcoin.
Bitcoin typically mirrors the movement of M2 with a 10-12 week lag. Recently, the M2 money supply saw a 2.7% rise, increasing from $107.5 trillion to $110.72 trillion.
Wise Advice notes that this pattern has been evident since 2023:
These instances demonstrate that Bitcoin’s price generally follows the M2 movement with a 10-12 week lag.
Currently sitting at $109K, Wise Advice predicts that if this pattern repeats, Bitcoin could grow by at least 24%, reaching $135K by July. The analysis also suggests that this surge in Bitcoin’s price could trigger a rally in altcoins as well.
M2 money supply includes physical currency, checking/savings accounts, and money market funds, signaling liquidity in the financial system.
Bitcoin’s price often mirrors the US M2 money supply’s movement with a 10-12 week lag, indicating more liquidity flowing into risk assets.
Bitcoin could reach $135K by July 2025 based on M2 correlation, but other analysts predict targets up to $250K-$325K based on various models.
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