Bitcoin News Today: Bitcoin Poised for 2025 Surge as $96T M2 Expansion and 2024 Halving Drive Liquidity Inflows

Bitcoin’s recent price range of $117,800 to $118,102 signals potential for significant upside in 2025 as global liquidity surges into assets. The cryptocurrency is consolidating near critical psychological resistance levels, a pattern often observed ahead of major price movements. This consolidation coincides with a broader macroeconomic shift: the global M2 money supply has expanded to nearly $96 trillion, a record high [1]. M2, which includes cash, checking deposits, and near-money assets, is a key indicator of liquidity in the financial system. As excess capital flows into the global economy, analysts argue that alternative stores of value—such as Bitcoin—are likely to absorb a portion of this liquidity [1].

Historically, Bitcoin has aligned with liquidity booms. For example, after the 2020 pandemic stimulus and M2 surge, Bitcoin rose from $10,000 to over $60,000 within a year. Similarly, the 2017 cycle saw Bitcoin climb from under $1,000 to nearly $20,000 following years of accommodative central bank policies [1]. These trends suggest that Bitcoin’s capped supply of 21 million coins and deterministic issuance make it uniquely positioned to benefit from fiat liquidity expansions. Unlike traditional assets, Bitcoin’s scarcity contrasts sharply with the inflationary nature of fiat currencies, creating an attractive proposition for capital allocators [1].

On-chain data further supports a bullish narrative. Exchange outflows are rising, indicating accumulation by long-term holders, while dormant coins remain stable. Metrics such as the MVRV Z score are trending upward, a pattern often observed before parabolic price moves. Additionally, ETF inflows, particularly from U.S. institutions, are absorbing Bitcoin at a faster rate than miners can produce new supply. This supply-demand imbalance, combined with the macroeconomic backdrop, creates a favorable environment for explosive price appreciation [1].

The 2025 timeline appears particularly promising due to converging factors. The Bitcoin halving event, expected in April 2024, historically precedes price rallies 12–18 months later. Central banks, including the Fed, are anticipated to ease monetary policy in 2025, which typically benefits liquidity-sensitive assets like Bitcoin. Meanwhile, global M2 momentum remains strong as governments face pressure to stimulate economies amid high debt levels and stabilizing inflation [1]. Analysts describe these conditions as a "perfect storm" for Bitcoin’s price expansion [1].

While past performance does not guarantee future results, the alignment of liquidity expansion, structural adoption, and technical indicators suggests that Bitcoin may be on the brink of a historic breakout. The current consolidation near $120,000, paired with an all-time high in global M2, underscores the potential for a significant move. As the macroeconomic cycle shifts from restraint to expansion, Bitcoin’s fixed supply and volatility profile position it to capture capital flows more effectively than traditional assets [1].

Sources:

[1] Why Bitcoin May Be On The Brink Of A Historic Breakout (https://www.benzinga.com/markets/cryptocurrency/25/07/46682737/why-bitcoin-may-be-on-the-brink-of-a-historic-breakout?utm_source=coingecko&utm_campaign=partner_feed&utm_medium=partner_feed&utm_content=site)