As a seasoned market analyst with over two decades of experience under my belt, I have witnessed various market cycles and trends unfold before my eyes. The current Bitcoin phenomenon is indeed captivating, and the predictions about its potential price surge are nothing short of astonishing.
In simpler terms, Bitcoin is currently experiencing a significant growth spurt in its market cycle, with experts predicting a peak price of over $110,000 by the end of January.
The cost of a single Bitcoin (BTC) might surpass $110,000 by the end of January, potentially, due to its connection with the Global Macro Investor’s Total Liquidity Index – a composite measure that reflects the overall size of major central banks’ reserves.
According to Raoul Pal, the CEO of Global Macro Investor, he stated in a recent post that the $110,000 price is currently considered a “peak in the local area” for this Bitcoin cycle.
“There have been a lot of imitations of this chart going around with the wrong phasing. Here is the updated original from our work at Global Macro Investor.”
Based on the analysis of Bitcoin’s liquidity index, I predict that the highest selling price for the cryptocurrency, represented by its right-hand side, will reach approximately $110,000 in January 2025. However, a significant drop is expected by February 2025, with the price falling below $70,000.
Growing M2 money supply to fuel Bitcoin’s 2025 rally
The drop below $70,000 is expected to be short-lived, according to Pal’s assessment, who foresees a persistent increase in liquidity lasting up until the third quarter of 2025.
According to Alvin Kan, the COO of Bitget Wallet, an increasing money supply has traditionally driven up the value of Bitcoin, as stated in his interview with CryptoMoon.
“The increase in liquidity from the Fed typically enhances market conditions for risk assets like Bitcoin. Historically, such liquidity injections have led to increased investor interest and capital inflows into cryptocurrencies.”
Other analysts expect global liquidity to peak at the end of January 2026.
According to past trends, it’s possible that as much as 10% of freshly minted currency could flow into Bitcoin. If this prediction holds true and the global money supply increases by an estimated $20 trillion by 2025, we might see approximately $2 trillion pouring into Bitcoin as new investment.
According to crypto analyst Rekt Capital’s recent post, Bitcoin appears to have moved into the “rapidly escalating upward stage” of its cycle based on the chart presented for the past week.
Bitcoin to reach $132,000 in 2025 on growing money supply
Based on the chart presented by Jamie Coutts, the chief crypto analyst at Real Vision, it is predicted that the increasing money supply could potentially cause the price of Bitcoin to surpass $132,000 in the upcoming year. He further stated this observation.
“Longer term, this is where I am at for this cycle; a 12-month forecast based on linear relationship with liquidity. But Bitcoin cycles are not linear. I think we go much higher than this.”
The surge in Bitcoin‘s price can be attributed not only to the expanding money supply but also significantly by the victory of Donald Trump in the November 5th U.S. Presidential Election.
Trump’s election win sparked a surge of optimism about taking risks, a sentiment that could fuel the 2025 cryptocurrency market surge, as reported by Bitfinex analysts to CryptoMoon.
“We expect all crypto assets to continue to make new highs into the new year once the Trump administration takes over and the industry benefits from an increasingly supportive regulatory environment.”
As a crypto enthusiast, I’m optimistic that Bitcoin could potentially reach $1 million if the Trump administration endorses a strategic Bitcoin reserve, as suggested by Adam Back, the visionary CEO of Blockstream, creator of Hashcash, and a renowned figure in the world of cryptography.
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2024-11-30 14:57