Bitcoin Price May Surge 39% to $250,000 by 2025 as M2 Money Supply Grows

Bitcoin’s price trajectory is increasingly aligned with the global M2 money supply growth, signaling a potential surge to $250,000 by the end of 2025. This alignment is driven by several key factors, including the rising global M2 money supply and improved market liquidity. The global M2 money supply, which includes cash, checking deposits, savings deposits, money market accounts, and other liquid assets, has been on an upward trajectory. This increase in liquidity can drive demand for Bitcoin, as investors seek alternative assets to hedge against inflation and economic uncertainty. Improved market liquidity also means that there are more buyers and sellers in the market, making it easier to trade Bitcoin without significant price fluctuations.

Analyst Michaël van de Poppe highlights Bitcoin’s 12-week lag correlation with M2, underscoring the cryptocurrency’s responsiveness to monetary expansion. Market analysis reveals that Bitcoin’s price movements consistently mirror changes in the global M2 money supply with approximately a 12-week delay. This lag offers investors a valuable predictive tool, allowing anticipation of Bitcoin’s trajectory based on monetary trends. As M2 surpassed $113 trillion in early 2025, Bitcoin’s price neared $180,000, confirming the robustness of this correlation. Such insights emphasize the importance of monitoring macroeconomic indicators to gauge crypto market potential.

Beyond liquidity metrics, the broader macroeconomic environment supports a bullish outlook for cryptocurrencies. Bitcoin’s volatility remains subdued, a condition often preceding significant directional price movements. Concurrently, growing market consensus around imminent interest rate cuts is expected to enhance liquidity further, channeling capital into risk assets like Bitcoin and altcoins. This convergence of factors creates a fertile ground for sustained crypto market expansion throughout 2025.

While Bitcoin leads the charge, altcoins are also gaining traction amid improving liquidity and easing monetary policies. Increased capital inflows and reduced volatility create favorable conditions for altcoin appreciation, potentially driving broader market rallies. Investors should watch for emerging trends in decentralized finance and blockchain innovation, which could amplify altcoin performance in this bullish phase.

Bitcoin’s alignment with global M2 growth, combined with favorable macroeconomic signals such as low volatility and anticipated rate cuts, underscores a compelling case for a significant price rally in 2025. This dynamic not only reinforces Bitcoin’s role as a macro-sensitive asset but also highlights the broader crypto market’s potential for growth. Stakeholders are advised to monitor liquidity trends and monetary policy developments closely to navigate upcoming opportunities effectively.