Bitcoin in 2025: Catalysts and Headwinds

Hello, traders! Welcome to the blog. In this post, we will explore the potential future price movements of Bitcoin. Bitcoin has been experiencing significant price fluctuations recently, with its value dropping to $91k-90k before bouncing back. While volatility is a key characteristic of the crypto market, various macroeconomic and regulatory factors are signaling a potentially bullish future for Bitcoin. In this article, I will break down these factors to make sense of Bitcoin’s possible price trajectory in 2025.

Global Liquidity and M2 Money Supply

Global liquidity plays a big role in market performance. When liquidity increases, markets go up. Vice versa, when liquidity stops rising, asset prices, including Bitcoin, go down.

Recently, we saw a $4 trillion decrease in global liquidity, which added to Bitcoin’s dip. However, historical patterns suggest that these dips are temporary, followed by a recovery period. The relationship between the S&P 500 and Bitcoin’s price movements shows the importance of liquidity.

The M2 money supply—which measures cash, checking deposits, and easily convertible near money—is another essential indicator. A rising M2 supply historically relates with a bullish trend for Bitcoin as more money circulates in the economy. Experts predict that global M2 supply will surge by 18%

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