-
Bitcoin Mirrors M2 Growth: Analyst Wise Advice links Bitcoin’s price movement to U.S. M2 money supply with a 10–12 week lag.
-
$135K Target by July 2025: Based on rising M2 levels, Bitcoin could surge 24% to hit $135K, potentially sparking an altcoin rally.
In the last 30 days, Bitcoin has seen a growth of at least 16%, with a 3.3% surge in just the past seven days. Currently, Bitcoin’s price sits at $109,031. A new research-based analysis predicts that Bitcoin could reach $135K by July 2025, driven by its correlation with the US M2 money supply.
Bitcoin & M2 Correlation Explained
The analysis, shared by crypto analyst Wise Advice, highlights the strong connection between Bitcoin’s price action and the US M2 money supply. M2 includes physical currency, checking deposits, saving accounts, and money market funds. When M2 increases, it signals more liquidity in the financial system, which often flows into risk assets like Bitcoin.
Bitcoin typically mirrors the movement of M2 with a 10-12 week lag. Recently, the M2 money supply saw a 2.7% rise, increasing from $107.5 trillion to $110.72 trillion.
Bitcoin’s Historical Price Action Pattern
Wise Advice notes that this pattern has been evident since 2023:
- October 2024: M2 peaked, and approximately 90 days later, Bitcoin reached a peak of $109K on January 20, 2025.
- April 2025: After M2’s January drop, Bitcoin dropped to a low of $74K by April 7, 2025.
These instances demonstrate that Bitcoin’s price generally follows the M2 movement with a 10-12 week lag.
BTC Price Prediction
Currently sitting at $109K, Wise Advice predicts that if this pattern repeats, Bitcoin could grow by at least 24%, reaching $135K by July. The analysis also suggests that this surge in Bitcoin’s price could trigger a rally in altcoins as well.
Leave a Reply