Originally published on: November 29, 2024
As expectations for continued liquidity injections in the global economy rise, Bitcoin is poised to attract another $2 trillion in investments by 2025.
According to Jamie Coutts, the chief crypto analyst at Real Vision, the United States Federal Reserve is anticipated to boost the global money supply to over $127 trillion in 2025, a significant increase from the current $107 trillion. This unprecedented liquidity injection could fuel Bitcoin’s price to reach $97,090 and potentially attract an additional $2 trillion worth of investments into the world’s leading cryptocurrency.
Historically, Bitcoin has captured about 10% of the newly created money supply, suggesting a promising outlook for its future growth. Coutts predicts that the global M2 money supply, which includes all cash and short-term bank deposits, will peak on January 26, 2026.
Institutional adoption of Bitcoin may also gain traction due to its impressive 113% annual returns, outperforming traditional investment options. With the growing money supply and concerns about the US dollar’s stability, Bitcoin’s rally in 2025 could see it surge as high as $150,000.
Ryan Lee, chief analyst at Bitget Research, believes that Bitcoin could reach this peak within the next six to nine months, citing current market sentiment and technical indicators. Additionally, asset management firm VanEck has predicted a price target of over $180,000 for Bitcoin in the next 18 months, driven by market optimism following Trump’s reelection.
However, Bitcoin faces resistance above $98,300 in the short term. A breakthrough above this level could trigger a significant liquidation of leveraged short positions across exchanges, potentially exceeding $1.04 billion in value.
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