Bitcoin News Today: Bitcoin's 2.3% M2 Growth and U.S.-EU Trade Deal Spur $130K Push

Bitcoin’s price trajectory has drawn renewed attention as a pseudonymous trader, Doctor Profit, outlines a multi-dimensional case for a potential surge toward $130,000. The analysis hinges on technical, macroeconomic, and geopolitical developments, with the cryptocurrency recently breaking above a critical multi-year resistance level. This breakout, combined with a major U.S.-EU trade agreement and expanding M2 money supply, has positioned Bitcoin as a focal point in global markets [1].

The technical catalyst emerged as Bitcoin decisively pierced a diagonal trendline that had resisted upward momentum for months. This level, tied to the 2021 all-time high, had repelled buyers since November 2024, marking four consecutive months of rejection. A clean monthly chart breakout and retest in July, according to Doctor Profit, confirm a structural shift. The analyst describes this as the start of “the next leg up,” with $130,000 becoming a primary target [1].

Geopolitical factors further amplify optimism. The U.S.-EU trade deal, announced on July 27, includes $750 billion in U.S. energy exports and $600 billion in EU infrastructure investments. Doctor Profit argues that eliminating the risk of a tariff war between the two economies has reduced macroeconomic uncertainty, creating a tailwind for risk assets like Bitcoin. The agreement coincided with a short-term price jump, lifting BTC from $114,500 to over $119,500 and pushing BNB to an all-time high above $850 [1].

Macro trends also support bullish sentiment. Despite the Federal Reserve’s quantitative tightening, M2 money supply expanded by 2.3% year-to-date, with May and June each posting a 0.63% monthly increase. Historical correlations suggest that every 1% rise in M2 has historically driven Bitcoin higher by 30-35%. If this pattern holds, the current 2.3% expansion could propel BTC 15-17.5% further, aligning with the $130,000 price level [1].

Price analysis underscores Bitcoin’s resilience. At $119,389, BTC has gained 0.9% in 24 hours and 0.7% weekly, with stronger gains over 30 days (11.3%) and one year (75.6%). While its short-term performance lags behind Ethereum and altcoins, its fundamental drivers remain intact. ETF inflows, particularly from BlackRock, continue to absorb more BTC than is being mined, acting as a long-term “vacuum cleaner” for supply. Additionally, the Fed’s expected rate hold at its upcoming FOMC meeting could extend liquidity expansion [1].

Doctor Profit’s analysis, however, rests on predictive models and historical correlations. The $130,000 target remains speculative until Bitcoin sustains movement above current levels. Market participants will also monitor how the U.S.-EU trade deal translates into broader economic activity, as well as the Fed’s policy response to inflation and M2 growth.

Source: [1] [Bitcoin Eyes $130K: Breakout, Trade Deal, and M2 Growth Signal Next Leg Up] [https://coinmarketcap.com/community/articles/6887be143c1f324d51533053/]