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Breaking News: BNB Hits Record High Exceeding $900 Following Binance And Franklin Templeton Collaboration
bitcoin

Bitcoin Could Capture 10% Of $20 Trillion Global Money Supply Growth In 2025, Analyst Predicts

Ash Tiwari
by Ash Tiwari
9 months ago
·
Posted in Bitcoin News
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

While the crypto market eagerly anticipates Bitcoin (BTC) breaking the $100,000 price level, the premier cryptocurrency may have even more room for growth in 2025 as the global M2 money supply expands.

Global Liquidity Surge: A Catalyst For Bitcoin?

In a detailed analysis on X, Jamie Coutts, chief crypto analyst at Real Vision, brought his follower’s attention to the expansion and contraction of the global M2 money supply over the past few years. 

Related Reading: Bitcoin Whales Remain Determined, $3.96 Billion Worth Of BTC Gobbled Up In 96 Hours

Coutts noted that after bottoming out at $94 trillion in Q4 2022, the global M2 money supply has risen to $105 trillion. Over the same period, Bitcoin’s market capitalization soared fivefold, from approximately $400 billion to nearly $2 trillion at the time of writing. He added:

In other words, 10% of the new money supply has leaked from the fiat system into the emerging global reserve asset of Bitcoin (gold, equities etc have absorbed new money as well). What happens if M2 expands by the usual $30T this cycle?

Notably, the global M2 money supply is projected to surge past $127 trillion in 2025 due to global liquidity concerns – an increase of more than 18% from the current $107 trillion. Assuming that 10% of this increased liquidity – about $2 trillion – is captured by BTC, the digital asset’s price could skyrocket in 2025.

Bitcoin
Source: Jamie Coutts on X

To reinforce his argument, Coutts shared the following chart comparing the Federal Reserve’s balance sheet expansion, U.S. M2 money supply growth, U.S. real wage changes, and Bitcoin’s price performance. The data reveals that BTC has significantly outperformed other instruments, especially as the US dollar depreciates with increasing supply.

BTC
Source: Jamie Coutts on X

Mixed Views On BTC And Money Supply Correlation

While some analysts foresee Bitcoin benefiting from the expanding money supply, opinions differ regarding the strength of this correlation. The global M2 money supply, which includes all cash and short-term bank deposits, is expected to peak by January 2026 before contracting to $118 trillion later that year. Along this trajectory, Bitcoin could potentially reach $150,000.

Related Reading: Bitcoin Price Is Decoupling From Gold Again — What’s Happening?

In contrast, however, crypto analyst Joe Consorti cautioned that BTC’s correlation with the global M2 money supply could drag it down 20% to 25%, all the way down to $70,000. In reply, entrepreneur David Quintieri said BTC is too volatile to be meaningfully tracked against anything.

2024 has been a pivotal year for the leading cryptocurrency, with the approval of spot Bitcoin exchange-traded funds (ETF) in the US, the Bitcoin Halving, rising institutional adoption, and the victory of pro-crypto Donald Trump in the November election.

Against such bullish backdrop, it’s not surprising to see ambitious BTC price targets being shared by institutional investors. BTC trades at $97,944 at press time, up 3.1% in the past 24 hours.

Bitcoin
BTC trades at $97,944 on the daily chart | Source: BTCUSDT on TradingView.com
Featured Image from Unsplash.com, Charts from X.com and TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
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Ash Tiwari

Ash Tiwari

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Ash is a seasoned freelance editor and writer with extensive experience in the blockchain and cryptocurrency industry. Over the course of his career, he has contributed to major publications, playing a key role in shaping informative, timely content related to decentralized finance (DeFi), cryptocurrency trends, and blockchain innovation. His ability to break down complex topics has allowed both seasoned professionals and newcomers to the industry to benefit from his work. Beyond these specific roles, Ash's writing expertise spans a wide array of content, including news updates, long-form analysis, and thought leadership pieces. He has helped multiple platforms maintain high editorial standards, ensuring that articles not only inform but also engage readers through clarity and in-depth research. His work reflects a deep understanding of the rapidly evolving blockchain ecosystem, making him a valuable contributor in a field where staying current is essential. In addition to his writing work, Ash has developed a strong skill set in managing content teams. He has led diverse groups of writers and researchers, overseeing the editorial process from topic selection, approval, editing, to final publication. His leadership ensured that content production was timely, accurate, and aligned with the strategic goals of the platforms he worked with. This has not only strengthened his expertise in content strategy but also honed his project management and team coordination skills. Ash's ability to combine technical expertise with editorial oversight is further bolstered by his knowledge of blockchain analysis tools such as Etherscan, Dune Analytics, and Santiment. These tools have provided him with the data necessary to create well-researched, insightful articles that offer deeper market perspectives. Whether it’s tracking the movement of digital assets or analyzing blockchain transactions, his analytical approach adds value to the content he produces, ensuring readers receive accurate and actionable information. In the realm of content creation, Ash is not limited to just cryptocurrency markets. He has demonstrated versatility in covering other emerging technologies, market trends, and digital transformation across various industries. His in-depth research, coupled with a sharp editorial eye, has made him a sought-after professional in the freelance writing community. From developing editorial calendars to managing content delivery schedules, he has honed a meticulous approach to project management that ensures timely, high-quality work delivery. Throughout his freelance career, Ash has consistently focused on improving audience engagement through well-researched, insightful, and relevant content. His ability to adapt to the evolving needs of clients, whether it's enhancing the visibility of digital platforms or producing thought-provoking pieces for a wide range of audiences, sets him apart as a dynamic force in the field of digital content creation. His contributions have helped to shape a well-rounded portfolio that showcases his versatility, technical expertise, and dedication to elevating the standards of journalism in blockchain and related sectors.

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