Bitcoin News Today: Bitcoin Price Soars 150% as M2 Expansion Fuels $200K Push

Generated by AI AgentCoin World
Monday, Jul 28, 2025 8:03 am ET2min read
Aime RobotAime Summary

- Bitcoin’s price surged 150% since early 2025, driven by institutional demand and M2 money supply expansion.

- Analysts highlight a strong historical correlation (0.65–0.89) between Bitcoin and global M2 liquidity, with $112 trillion in July 2025 potentially pushing prices toward $200,000.

- Technical indicators show consolidation near $119,387, supported by robust liquidity and stable on-chain metrics, though short-term dips below $100,000 remain speculative risks.

- Institutional adoption and regulatory clarity reinforce Bitcoin’s dominance as a hedge against inflation, with $110,000 support critical for further gains.

Bitcoin’s price has demonstrated remarkable resilience amid persistent correlations with the global M2 money supply, with analysts emphasizing the cryptocurrency’s alignment to macroeconomic trends. The

has consolidated near $119,387 after a 150% surge since early 2025, a rally driven by a confluence of institutional demand and liquidity dynamics [1]. This sustained performance underscores investor confidence in Bitcoin’s role as a hedge against inflation and a store of value in an era of expanding global money supply [2].

The M2 money supply, which measures cash, checking deposits, and near-money assets, has historically exhibited a strong correlation with Bitcoin’s valuation. Studies highlight a historical link with correlations ranging from 0.65 to 0.89, with M2 liquidity shifts often preceding Bitcoin price changes by 12–90 days [1]. As of July 2025, global M2 expanded to $112 trillion, a figure that analysts argue could underpin further gains for Bitcoin, potentially pushing it toward $200,000 by year-end [2].

Technical analyses reinforce this outlook. Bitcoin’s price action reveals three distinct phases: consolidation around $104,000–$109,000 in late 2024, a steady climb in early 2025, and a rapid surge to record highs by mid-2025. The current consolidation phase—with daily fluctuations between $119,387.50 and $119,674.90—suggests a healthy market environment, supported by tight buy-sell spreads and robust liquidity [1]. Analysts like Crypto_Twitter note that Bitcoin’s alignment with M2 trends signals favorable macroeconomic conditions for upside potential, though they caution that rapid gains could trigger corrections [1].

Institutional adoption has further solidified Bitcoin’s bullish trajectory. Since 2024, inflows exceeding $1.2 trillion have bolstered demand, while developments such as the

Digital Asset Conference and regulatory clarity have enhanced its appeal [1]. On-chain metrics show no significant liquidation spikes, and sentiment remains stable across platforms like GitHub and Twitter. Meanwhile, structural factors—including proposals to expand Bitcoin access in retirement funds and Ethereum’s 50% monthly surge—highlight the maturation of the crypto sector [1].

Despite periodic volatility, Bitcoin’s dominance remains unchallenged. Analysts like Peter Brandt have dismissed alternative coins as “posers,” reiterating that “crypto is Bitcoin” [6]. While forecasts for a short-term dip below $100,000 exist—such as Finbold’s AI model predictions—these are largely viewed as speculative and at odds with Bitcoin’s broader technical strength [10].

Looking ahead, the M2 money supply’s record high and ongoing global stimulus programs amplify Bitcoin’s positioning as a decentralized store of value. Analysts project that maintaining key support levels, such as $110,000, could drive the price toward $130,000 or beyond [4]. However, the market’s resilience will depend on sustaining liquidity conditions and institutional backing. As Bitcoin consolidates near record highs, its performance remains a critical barometer for macroeconomic health and monetary trends [2].

Sources:

[1] [Bitcoin Must Stay Above $98K to Avoid Bearish Breakdown](https://news.bitcoin.com/bitcoin-must-stay-above-98k-to-avoid-bearish-breakdown-experts-say/)

[2] [Bitcoin Eyes $200K as M2 Expansion and On-Chain...](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-eyes-200k-m2-expansion-chain-metrics-signal-bull-run-2507/)

[3] [Bitcoin Could Reach $200K in 2025, But Only If Liquidity...](https://www.techi.com/bitcoin-price-forecast-2025-200k-liquidity/)

[4] [Analyst Predicts Bitcoin May Hit $130K if $110K Support Holds](https://coingape.com/analyst-predicts-bitcoin-may-hit-130k-if-110k-support-holds/)

[6] [Best Crypto To Buy Now: BTC Rallies Amid Global M2 Spike](https://99bitcoins.com/news/altcoins/live-bitcoin-targets-132k-milestone-after-defending-118k-support-best-crypto-to-buy-now-as-m2-money-supply-hits-ath/)

[10] [Bitcoin Price Holds Strong as M2 Money Supply Correlation Persists](https://cryptofrontnews.com/bitcoin-price-holds-strong-as-m2-money-supply-correlation-persists/)

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