Bitcoin is on track to achieve remarkable price growth in 2025, potentially reaching $150,000, as new insights suggest a significant liquidity injection could boost the cryptocurrency’s market cap. Experts predict that a projected $20 trillion increase in the global money supply will be a major catalyst for Bitcoin’s ascent. This liquidity surge, expected to be driven by monetary policy actions from the US Federal Reserve, could inject trillions of dollars into the financial system, and Bitcoin stands to capture a substantial portion of these new funds.

Global Money Supply and Bitcoin’s Growth Potential

Jamie Coutts, a chief crypto analyst at Real Vision, forecasts that the global money supply, known as M2, will increase by 18% by 2025, rising from its current $107 trillion to over $127 trillion. Historically, Bitcoin has absorbed around 10% of the newly injected liquidity from such expansions, suggesting that the cryptocurrency could experience significant inflows once this liquidity boost takes place.

Coutts highlights that between Q4 2022 and the present, the global M2 money supply grew by $11 trillion, while Bitcoin’s market cap grew fivefold, adding $1.5 trillion. These trends reveal a clear pattern: Bitcoin has been a prime beneficiary of the increase in global liquidity, capturing a notable share of new investments. As the global money supply is set to expand by $20 trillion in the coming years, Bitcoin could see as much as $2 trillion in new investments.

Bitcoin as a Hedge Against Economic Instability

Bitcoin’s growing role as a store of value is driving institutional confidence and attracting new investments. With the global financial system facing inflationary pressures and weakening fiat currencies, Bitcoin is increasingly seen as a hedge against economic uncertainty. Its decentralized nature and fixed supply make it a unique asset class in the face of monetary debasement, making it an attractive option for both retail and institutional investors.

Coutts notes that Bitcoin’s superior annualized returns—averaging over 113%—have reinforced its appeal to institutional investors. The increasing institutional adoption of Bitcoin as a hedge against inflation is expected to continue, further fueling demand. As confidence in traditional fiat currencies, particularly the US dollar, wanes, investors are looking for more reliable stores of value, and Bitcoin is emerging as a strong contender in this space.

The Road to $150,000: Factors Driving Bitcoin’s Price Surge

With the anticipated surge in global liquidity, Bitcoin’s price could potentially reach $150,000 by 2025. As more investors seek alternatives to fiat currencies, Bitcoin’s value proposition as a hedge and store of value is likely to be realized in a much broader institutional context. This growth in demand will be further supported by Bitcoin’s role as a global reserve asset, drawing more investors from traditional markets.

Bitcoin’s increasing institutional adoption and growing reputation as a reliable store of value are expected to propel the cryptocurrency’s price trajectory higher. The liquidity surge, driven by economic policies and market dynamics, will position Bitcoin as one of the most attractive investment opportunities of the next few years. As monetary expansion continues globally, Bitcoin is primed for a massive rally in 2025.

Conclusion

The convergence of increased global liquidity and growing institutional interest positions Bitcoin for remarkable growth in the coming years. With a projected surge in the global money supply, Bitcoin could capture a significant share of the $20 trillion expected to flow into the financial system, potentially pushing its price to new heights. As the financial world turns to Bitcoin as a hedge against economic instability and inflation, the cryptocurrency’s journey to $150,000 seems increasingly within reach by 2025.