Bitcoin price target ‘sits around $170K’ as global M2 supply reaches record high

1 day ago

Key takeaways:

Bitcoin could people $170K arsenic planetary M2 wealth proviso hits a grounds $55.48 trillion.
BTC terms historically lags M2 breakouts, with past patterns suggesting imminent upside.
A weakening US dollar adds substance for BTC bulls, with DXY down 10.8% successful H1 2025.

Bitcoin (BTC) could beryllium connected way to scope $170,000 arsenic planetary liquidity, measured by wide wealth proviso (M2), hits a caller grounds precocious of $55.48 trillion connected July 2.

Bitcoin typically follows the M2 breakout

M2 aggregates US dollar-adjusted liquidity from the US, eurozone, Japan, the UK, and Canada.

When M2 rises, it indicates that more wealth is circulating successful the economy, including successful slope accounts, checking deposits, and different liquid assets. Such surplus liquidity tin summation superior flowing into “riskier assets” similar crypto.

Bitcoin has historically followed planetary and US M2 proviso with a 3–6 period lag, particularly during liquidity shifts. In immoderate cases, similar the April 2025 breakout supra $100,000, the lag was conscionable 1–2 weeks.

While BTC has rallied during debased M2 growth, specified moves often beryllium unsustainable.

In contrast, M2-driven rallies thin to nutrient longer, much unchangeable uptrends, suggesting the existent rhythm whitethorn beryllium supported by existent liquidity, not speculation.

“As planetary wealth proviso expands, Bitcoin’s adjacent people sits astir ~$170K, pursuing the flow,” says expert Crypto Auris.

Multiple analysts person predicted the BTC terms to scope the $150,000-200,000 range by the 2025’s end, owing to rising institutional request via ETFs and corporations.

Weakening USD puts Bitcoin rally successful play

The increasing request for Bitcoin appears against a weakening US dollar.

The US Dollar Index (DXY) has fallen 10.8% successful the archetypal fractional of 2025, its worst H1 show since the illness of the Bretton Woods strategy successful 1973.

In contrast, Bitcoin gained 13.25% successful the aforesaid period, reflecting a antagonistic correlation with the dollar.

Historically, major divergences betwixt Bitcoin and the dollar person signaled cardinal inclination reversals.

In April 2018 and March 2022, rising DXY and falling BTC preceded carnivore markets. While the divergence successful November 2020 marked the commencement of a large rally.

In the existent cycle, BTC and DXY person moved astir successful lockstep until aboriginal 2024. A wide divergence began successful April 2025, arsenic DXY fell beneath 100 for the archetypal clip successful 2 years.

If past patterns repeat, this could people the opening of a caller Bitcoin uptrend. Prolonged dollar weakness could amplify this determination beyond Bitcoin’s emblematic rhythm behavior.

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.

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