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Over the past month, Bitcoin has increased by 16.52% and it saw a 3.95% rise in the week before. As of press time, Bitcoin is priced at $109,478. Recent predictions from cryptocurrency experts Wise Advice suggest that Bitcoin price could reach $135,000 by July 2025.
Such an optimistic outlook is mainly due to the strong connection between Bitcoin’ price and the US M2 money supply.
The Connection Between Bitcoin Price and the M2 Money Supply
According to the analysis, Bitcoin’s price is more closely tied to the US M2 money supply than to other factors. Items included in M2 are physical currency, checking deposits, savings accounts, and money market funds. An increase in M2 indicates greater liquidity in the financial system.
The extra money often goes into risk assets like Bitcoin, which raises its cost. Usually, Bitcoin has tracked changes in M2 with a lag of 10 to 12 weeks in the past.
During the past few months, M2 money supply went up by 2.7%, from $107.5 to $110.72 trillion. The higher the liquidity, the more capital expected to be invested in Bitcoin, pushing its price up higher. Monitory M2 may hold the key to predicting how Bitcoin price will move moving forward.
Bitcoin Price and Historical Trends: A Pattern of Growth
The price of Bitcoin has, historically, increased after the M2 money supply does. For instance, in October 2024, M2 peaked and only about three months later in January 2025, Bitcoin reached $109,000. By contrast, when M2 fell in January 2025, Bitcoin price went down to $74,000 by April 2025. Based on these trends, M2 can be used as an important clue to what Bitcoin price may do next.
If this pattern holds, Bitcoin price could grow by at least 24%. The expected increase of $135,000 by mid-2025 aligns with historical data and the ongoing trend of rising liquidity.
Investor Behaviour Driving Bitcoin’s Price Surge
Many investors’ growing assurance in Bitcoin could explain why it is trading higher. Although Bitcoin price dipped last week, it has come back, suggesting that investors still back the cryptocurrency. More activity from both group and individual investors has helped keep Bitcoin price steady and encouraged a bright outcome.
Data shows that an increased number of first-time users are buying Bitcoin. March to May 2025 and then again from July to December 2024, saw a boost in buying activity for Bitcoin.
The growth in price we see with Bitcoin has been made possible in part by the new investments. With demand rising higher than supply, Bitcoin price will likely keep increasing.
Long-Term Holders and Their Role in Bitcoin Price Stability
Large investors keep helping to stabilize the value of Bitcoin. Investors in LTHs keep their Bitcoin for a long time which decreases the supply of the cryptocurrency. It avoids sudden big declines in the asset’s price during times when the market is correcting itself.
According to the indicator, LTHs are still strongly bullish. As a result, Bitcoin price tends to stay strong when short-term fluctuations occur. Crypto investors who keep their coins for a long time stabilize the Bitcoin market and lessen the effects of daily ups and downs.
The Future Outlook for Bitcoin Price
A positive outlook for Bitcoin’s price continues, thanks to growing faith among investors and an increase in liquidity. A rise in the M2 money supply should lead to a rise in Bitcoin’s price, possibly to $135,000 by July 2025. As long-term holders are accumulating Bitcoin, the structure of the market is pushed forward, preparing it for more growth.
| Month | Minimum Price | Average Price | Maximum Price | Potential ROI |
|---|---|---|---|---|
| May | $110,002.71 | $121,731.08 | $133,459.44 |
21.5%
|
| June | $110,926.19 | $124,990.79 | $139,055.38 |
26.6%
|
| July | $100,034.56 | $99,504.73 | $98,974.90 |
-9.9%
|
| August | $100,011.98 | $99,803.14 | $99,594.30 |
-9.3%
|
| September | $119,228.23 | $108,877.18 | $98,526.12 |
-10.3%
|
| October | $105,356.93 | $114,974.53 | $124,592.13 |
13.4%
|
| November | $100,205.88 | $99,870.21 | $99,534.54 |
-9.4%
|
| December | $100,999.29 | $97,154.32 | $93,309.34 |
-15.1%
|
Because Bitcoin is favored by institutions and appreciated by retail buyers, its demand is likely to keep growing. The greater the amount of money invested in Bitcoin, the more robust the growth in its price will be in the coming years.
Conclusion
Analysts predict Bitcoin price could hit $135,000 by the end of July 2025. There is a clear link between Bitcoin price and the US M2 supply. More investments into the market and the gradual build-up by long-term users is increasing stability.
A rise in Bitcoin liquidity is expected to help the currency’s price climb steadily, making it a top performer in today’s digital asset market.
Frequently Asked Questions (FAQ)
1- How does the M2 money supply affect Bitcoin price?
The M2 money supply impacts Bitcoin price because increases in liquidity often flow into risk assets like Bitcoin, leading to price increases.
2- Why are long-term holders (LTHs) important for Bitcoin’s price?
LTHs help reduce the circulating supply of Bitcoin, supporting price stability by holding onto their coins, especially during market corrections.
3- What is Bitcoin’s price forecast for 2025?
Analysts predict that Bitcoin could reach $135,000 by July 2025, driven by a correlation with the US M2 money supply and growing investor confidence.
4- How do new investor inflows impact Bitcoin’s price?
New investor inflows drive demand for Bitcoin, which, combined with its limited supply, increases upward price pressure, contributing to price growth
Appendix: Glossary of Key Terms
Bitcoin Price: The current market value of Bitcoin, influenced by demand and supply factors.
M2 Money Supply: A measure of the total money supply, including currency, checking deposits, and savings accounts.
HODL: A term used by cryptocurrency investors, meaning to hold onto their assets rather than sell.
Long-Term Holders (LTHs): Investors who retain their Bitcoin for extended periods to reduce the circulating supply.
First-Time Buyers: Individuals purchasing Bitcoin for the first time, often signaling new capital inflows.
Liquidity: The availability of assets to be quickly bought or sold in the market without affecting its price.
Price Surge: A rapid and significant increase in the price of Bitcoin, often driven by market demand or liquidity.
References
CoinPedia – coinpedia.org
BeInCrypto – beincrypto.com
