Bitcoin might see $2 trillion in investments in 2025 as global liquidity expands, driven by monetary policies in major economies.
Rising Liquidity and Bitcoin’s Potential
The United States Federal Reserve is expected to inject significant liquidity into the global economy, increasing the global money supply (M2) to $127 trillion by 2025, up from $107 trillion today—a projected 18% rise, according to Jamie Coutts, chief crypto analyst at Real Vision.
Bitcoin, known for capitalizing on liquidity growth, could benefit substantially. Coutts predicts Bitcoin might attract about 10% of this new money supply, aligning with historical trends.
“Global M2 bottomed at $94 trillion in Q4 2022 and has since climbed to $105 trillion. During this period, Bitcoin’s market cap quintupled, adding $1.5 trillion,” Coutts explained in a Nov. 28 X post.
Impact on Bitcoin’s Market Cap
If Bitcoin replicates past performance, the cryptocurrency could draw $2 trillion from the anticipated $20 trillion liquidity injection. This scenario would further cement its position as a global financial asset, gaining traction as an alternative to traditional fiat systems.
Looking Ahead
Projections indicate that the global money supply will peak in January 2026, setting the stage for Bitcoin to continue thriving as a store of value and investment vehicle in a liquidity-rich environment.
Summary Review: Bitcoin could see significant growth in 2025, fueled by a projected $20 trillion increase in the global money supply. Analysts estimate Bitcoin could attract $2 trillion of this liquidity, reinforcing its status as an emerging global reserve asset.
Disclaimer: Nothing in this article, or any content from Web30 News, should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves risks, and investors should be aware that capital is at risk and returns are never guaranteed. Please conduct thorough research and consult with a qualified financial advisor before making any investment decision.
