Reaching an unprecedented milestone, Bitcoin’s share of global M2 money supply has climbed to approximately 1.7%. This significant increase signifies the cryptocurrency’s growing prominence in the global economy, mirroring a wider trend of increasing liquidity across financial markets. Experts emphasize this correlation as a key driver for Bitcoin’s price fluctuations. Key figures like Raoul Pal and Michaël van de Poppe highlight the impact of global liquidity on Bitcoin, with Pal stating that it drives up to 90% of its value, while van de Poppe discusses a 12-week lag between M2 growth and Bitcoin’s performance.
Analysts project a potential Bitcoin price surge as high as $200,000 by 2025. The rise in global M2 money supply has fueled institutional interest in hard assets such as Bitcoin. As central banks expand liquidity through rate cuts, Bitcoin further strengthens its position as a potential macroeconomic hedge.
This trend aligns with previous bull runs following periods of increased global monetary expansion. Historical data suggests that Bitcoin’s value is positively correlated with these expansions, highlighting its importance within the broader financial landscape.
The continued growth of Bitcoin’s market share further reinforces its status as a leading cryptocurrency asset. Experts anticipate sustained adoption and price increases in the coming years.