A new research analysis predicts that the price of Bitcoin will reach $135,000 by July 2025, driven by its strong relationship with the U.S. money supply M2, according to a recent report by the company "Wise Advice," which specializes in analyzing cryptocurrency markets.
The report indicates a clear connection between Bitcoin price movements and liquidity levels in the U.S. financial system, as Bitcoin typically reflects the trend of the M2 money supply with a lag time of 10 to 12 weeks.
In the latest data, the U.S. money supply M2 increased by 2.7%, surpassing $110.72 trillion, up from $107.5 trillion. "Wise Advice" has noted a clear pattern in Bitcoin movement in accordance with this indicator over the past few months, as October 2024 saw a new peak in M2, followed by a rise in the price of Bitcoin to $109,000 by January 2025. Conversely, as the money supply decreased in January, Bitcoin dropped to $74,000 in April 2025, reinforcing the hypothesis of the timing correlation between the two indicators.
Bitcoin is currently priced at $109,000. "Wise Advice" estimates that the recurring pattern could drive the price up by 24% to reach $135,000 by July 2025, especially with ongoing increases in cash liquidity. This is also likely to stimulate a broader upward movement in the altcoin market associated with Bitcoin's fluctuations.
This analysis indicates the importance of monitoring U.S. economic variables for cryptocurrency investors, particularly as the influence of monetary factors on market movements grows, highlighting Bitcoin's significance as an asset that is directly affected by inflation and cash liquidity.
It is noted that the U.S. money supply M2 is a measure that includes paper currency, demand deposits, savings accounts, and money market funds, making it a key tool for tracking liquidity flows that directly impact high-risk assets, with Bitcoin at the forefront.
