Originally published on: November 29, 2024
According to a recent study, Bitcoin is poised to draw in another $2 trillion in investments by 2025, fueled by the anticipated surge in liquidity injections in the global economy.
The United States Federal Reserve is expected to boost the world’s money supply to over $127 trillion by 2025, representing an 18% increase from the current $107 trillion, as stated by Jamie Coutts, the chief crypto analyst at Real Vision.
Coutts predicts that Bitcoin’s price could reach $132,000 due to the growth in the M2 money supply. Historically, BTC has attracted approximately 10% of the newly injected money supply, leading to a potential influx of $2 trillion into the cryptocurrency market.
Global Money Supply is forecasted to peak in 2026, according to Coutts’ projections, exacerbating concerns about continuous monetary debasement and prompting institutional investors to turn to Bitcoin for its strong returns.
With Bitcoin’s annual returns of 113% outperforming traditional investment options, it is anticipated that the cryptocurrency will experience a significant rally in 2025, potentially reaching a peak of $150,000.
Ryan Lee, the chief analyst at Bitget Research, believes that Bitcoin could hit this milestone within the next six to nine months based on current market trends and technical analysis.
Despite optimistic forecasts, Bitcoin faces key resistance levels, particularly above $98,300, which could trigger significant liquidations of leveraged short positions across various exchanges.
As the global economy braces for increased liquidity and potential currency devaluation, Bitcoin is positioned to emerge as a key asset for investors seeking to capitalize on the evolving financial landscape.
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