Bitcoin News Today: Bitcoin Surges 150% in 2025 as M2 Money Supply Reaches $112 Trillion, Reinforcing Macro Barometer Role

Bitcoin’s price has maintained resilience amid a persistent correlation with global M2 money supply expansion, reinforcing its role as a macroeconomic barometer in the cryptocurrency market. The digital asset is currently consolidating near $119,387 after a 150% surge between early and mid-2025, reflecting strong liquidity and investor confidence. This alignment with M2 trends—measured by the total cash and accessible deposits in circulation—has drawn attention from analysts, who highlight its significance for long-term price stability.

The cryptocurrency’s performance in 2025 has been marked by three distinct phases: a consolidation phase around $104,000–$109,000 through late 2024, a steady climb in early 2025, and a sharp rally beginning in March. By mid-2025, Bitcoin reached record highs above $180,000, prompting renewed scrutiny of its macroeconomic underpinnings. Analysts on platforms such as Crypto_Twitter emphasize that Bitcoin’s current position near $119,387, with daily fluctuations within a narrow $0.10 range, indicates robust on-chain liquidity and a healthy market environment [1].

The correlation between Bitcoin and M2 money supply remains a focal point for market observers. Studies show a statistical link with correlation coefficients ranging from 0.65 to 0.89, with M2 trends often preceding Bitcoin price movements by 12 to 90 days [1]. As of July 2025, global M2 liquidity has reached $112 trillion, a threshold that analysts argue could signal further gains for Bitcoin. This dynamic has positioned the asset as a hedge against currency devaluation, particularly in environments of expanding liquidity.

While Bitcoin’s performance remains central to discussions, analysts anticipate broader participation in the crypto sector by Q4, particularly from altcoins. Ethereum, for instance, is seen as a potential driver of momentum as it approaches new all-time highs. This expectation, however, is contingent on sustained M2 expansion and macroeconomic conditions that support risk-on sentiment.

Projections for Bitcoin’s future trajectory vary. Some analysts forecast a potential surge to $200,000 in 2025, citing historical patterns and the 10-week lag between liquidity shifts and price movements [2]. These forecasts, however, are tempered by caution. Market participants note that while M2 growth provides a favorable backdrop, other factors—including real interest rates and institutional adoption—remain critical variables. Derivative markets and on-chain data currently show Bitcoin consolidating within a $116,000–$120,000 range, reflecting cautious optimism as traders assess broader economic signals [5].

The interplay between monetary policy and Bitcoin has gained renewed focus, with the asset increasingly viewed as a "barometer of global capital flows." Low real interest rates and high liquidity have amplified Bitcoin’s appeal, mirroring trends observed in traditional markets. Proponents argue that its fixed supply and decentralized nature position it to benefit disproportionately from liquidity-driven environments. However, skeptics caution against overreliance on the M2 correlation, emphasizing the complexity of balancing liquidity optimism with traditional risk management principles.

Sources:

[1] [Global Liquidity Surge Sets Stage for Bitcoin Price Explosion](https://news.bitcoin.com/global-liquidity-surge-sets-stage-for-bitcoin-price-explosion/)

[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/)

[5] [The crypto market digested the sell-off and moved further up](https://www.fxstreet.com/cryptocurrencies/news/the-crypto-market-digested-the-sell-off-and-moved-further-up-202507280808)