Bitcoin may attract $2T from new $20T money supply in 2025

Bitcoin may attract another $2 trillion worth of investment during 2025, based on expectations of continued liquidity injections in the world’s largest economy.

Due to liquidity concerns, the US Federal Reserve is projected to increase the global money supply to over $127 trillion during 2025, up from the current $107 trillion, marking a potential 18% increase, shared Jamie Coutts, chief crypto analyst at Real Vision.

BTC projection to $132,000 on M2 money supply growth. Source: Jamie Coutts

The $20 trillion liquidity injection could be a significant catalyst for Bitcoin’s ( BTC ) price during 2025, which could attract another $2 trillion worth of investment into the world’s first cryptocurrency.

The $2 trillion may flow into Bitcoin based on historical data, which saw BTC attract approximately 10% of the newly created money supply, wrote Coutts in a Nov. 28 X post:

“Global M2 bottomed at $94T in Q4 2022 and has since climbed to $105T. 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…”

Global Money Supply Peak 2026. Source: Jamie Coutts

According to Coutts’ predictions, the global M2 money supply — an estimate of all cash and short-term bank deposits across the US — is projected to peak on Jan. 26, 2026.

Related: Bitcoin 30% correction in play ahead of $100K BTC rally — Analysts

Bitcoin to $150k cycle top on growing M2 money supply?

The growing monetary debasement may strengthen institutional Bitcoin adoption due to Bitcoin’s over 113% annual returns, which has been outperforming traditional investment vehicles, added Coutts.

BTC annual change. Source: Jamie Coutts

The growing money supply and potential weakness in the US dollar are expected to fuel the Bitcoin 2025 rally, which could see BTC rise as high as $150,000.

Based on the current market sentiment and technical patterns, Bitcoin could reach this bull cycle top during the next six to nine months, according to Ryan Lee, chief analyst at Bitget Research, who told Cointelegraph:

“This projection places a potential peak between late 2024 and mid-2025. Price target predictions vary significantly, but some analysts have mentioned the possibility of Bitcoin reaching $118,928 or even climbing as high as $130,000 to $150,000 by late 2025.”

Related: Ether to breach $4k before Trump’s inauguration: analyst

Others see this as a conservative estimate of Bitcoin’s potential. Notably, asset management giant VanEck predicted an over $180,000 Bitcoin price during the next 18 months, driven by growing market optimism thanks to Trump’s presidential victory.

However, Bitcoin faces significant resistance above $98,300 in the short term.

Bitcoin exchange liquidation map. Source: CoinGlass

A potential move above would liquidate over $1.04 billion worth of cumulative leveraged short positions across all exchanges, CoinGlass data shows . 

Magazine: Is Bitcoin heading back to $90K? Solana ETFs, and more: Hodler’s Digest, Nov. 17 – 23