Bitcoin News Today: Bitcoin's Lag Strategy: How Global Money Printing Fuels the Next Bull Run

Global M2 money supply has reached a new all-time high, raising speculation that Bitcoin (BTC) may follow a similar trajectory. According to recent data, the U.S. M2 money supply alone surpassed $22.13 trillion at the end of August 2025, a significant increase from the $22.02 trillion recorded in July. This follows a broader trend of global monetary expansion, with the combined M2 supply of major economies reaching $112 trillion as of January 2025, adding $7 trillion in just a few months [1]. The surge in liquidity is driven by monetary stimulus in China, the U.S., and other central banks, contributing to a global environment of increased money supply [1].

Historically, Bitcoin's price movements have shown a strong correlation with global M2 growth. In previous cycles, Bitcoin often rallied months ahead of liquidity peaks, suggesting it acts as a forward-looking indicator of monetary expansion [1]. This trend appears to be repeating in 2025, as Bitcoin's price closely tracked the recent liquidity expansion, reaching a new peak above $124,000 in August [2]. Despite a short-term correction in early 2025, Bitcoin has begun to rebound, with analysts noting that BTC typically lags between 60 and 70 days behind liquidity surges [2]. This time lag suggests a bullish setup for further gains in the months ahead, provided the global money-printing trend continues.

The link between Bitcoin and M2 is further reinforced by its relationship with other asset classes. During the latest expansion, Bitcoin, gold, and the S&P 500 index all showed a similar upward trend, indicating that BTC is influenced by the same macroeconomic factors as traditional risk assets [2]. However, unlike gold or stocks, Bitcoin's volatility remains higher, and it does not consistently outperform its peers. As of September 2025, Bitcoin was valued at around $109,000, slightly below its all-time high but still within striking distance of new records [2].

Analysts remain cautiously optimistic about Bitcoin's future price. While institutional adoption and regulatory progress have provided support, the asset remains vulnerable to macroeconomic shifts. For example, recent inflationary pressures led to a pullback from Bitcoin’s $124,000 high, raising concerns about its ability to maintain momentum [4]. Prediction markets suggest a 37% chance that Bitcoin could reach $150,000 by the end of the year, but this outcome depends heavily on the broader economic environment [6]. If inflation stabilizes and interest rates decline, as many market participants expect, Bitcoin could see renewed interest from both retail and institutional investors.

Beyond U.S. markets, global liquidity trends also play a significant role. China’s central bank, despite its 2021 ban on institutional crypto trading, has contributed to the overall increase in global M2. This has allowed Bitcoin to maintain its correlation with the global liquidity cycle, even as it faces regulatory headwinds in certain regions [1]. Additionally, the Middle East and parts of South America have shown growing interest in crypto, further broadening Bitcoin’s reach as a global asset.

As Bitcoin prepares for potential new highs, investors should remain mindful of its volatility. While historical patterns suggest a strong link between M2 and BTC prices, external factors such as regulatory changes, macroeconomic shifts, and market sentiment can disrupt this relationship [2]. Therefore, while the current liquidity environment is bullish for Bitcoin, it is not a guarantee of future performance. Investors are advised to consider both the long-term potential and the inherent risks associated with holding Bitcoin as part of a diversified portfolio [4].

Source: [1] M2 money supply in the US expanded in August, setting ... (https://www.mitrade.com/insights/news/live-news/article-3-1086366-20250902) [2] Bitcoin vs Global M2 Supply Growth Chart (https://newhedge.io/bitcoin/bitcoin-vs-global-m2-growth) [4] Deciding whether to hold or sell Bitcoin - Yahoo Finance (https://finance.yahoo.com/news/bitcoin-crests-more-124-000-084500469.html) [6] Bitcoin Just Hit $124000. Is $150000 Next? (https://www.aol.com/bitcoin-just-hit-124-000-132400669.html?utm_content=AOLcom/magazine/Business&utm_source=flipboard)