Bitcoin could reach $132K in 2025 on rising money supply

Bitcoin’s (CRYPTO:BTC) price could rally to $132,000 by 2025, driven by global money supply growth and potential U.S. dollar weakness, according to analysts.

Bitcoin recently came close to $100,000, peaking at $99,800 on November 22 before experiencing a 7% correction.

Analysts view this as a temporary pullback, citing macroeconomic factors that could fuel a strong bull market in 2025.

Jamie Coutts, chief crypto analyst at Real Vision, highlighted the correlation between Bitcoin’s price and the M2 money supply.

"DXY could have topped here. The Fed is waving the bull flag for risk assets again. Bullish 2025." Coutts stated, referencing the U.S. Dollar Index.

The M2 money supply turned positive year-over-year in May 2024, marking the first increase since November 2023.

This reversal spurred a 58% Bitcoin rally, as investors sought inflation hedges.

Coutts predicts the global money supply could rise by 18% in 2025, potentially reaching $127 trillion.

This liquidity injection is projected to drive Bitcoin to $132,000, though Coutts noted Bitcoin’s price cycles are not strictly linear.

Donald Trump’s victory in the U.S. presidential election has also bolstered optimism in the cryptocurrency market.

"We expect all crypto assets to make new highs into the new year once the Trump administration takes over and the industry benefits from an increasingly supportive regulatory environment," stated Bitfinex analysts.

Additional factors include MicroStrategy’s ongoing Bitcoin acquisitions, with the company planning to purchase over $40 billion worth of BTC.

Meanwhile, Bitcoin is nearing one million daily active addresses for the first time since 2019, signaling growing adoption.

At the time of reporting, the Bitcoin (BTC) price was $96,455.15.