Bitcoin Price Tied to Global Liquidity: Analysts Predict $100K Correction Before $130K Peak
Analysts, including Abra CEO Bill Barhydt and Kyle Chassé, highlight a strong correlation between Bitcoin price movements and global M2 money supply. Historical data and widely-shared charts indicate that as M2 liquidity increases—currently above $111 trillion—Bitcoin tends to track this growth with a lag of around three months. Barhydt forecasts a possible temporary pullback in Bitcoin to the $95,000–$100,000 range, followed by a new all-time high near $130,000 in August or September if liquidity expansion continues. Chassé previously projected an even larger upside, with potential for Bitcoin to reach $400,000 should M2 growth persist through mid-2025. Analysts emphasize that while rising global money supply is supportive for Bitcoin and could trigger an altcoin season benefiting other Layer 1 blockchains, traders should also monitor real interest rates, central bank policies, and on-chain data for additional market signals. Risk management is advised, as sentiment and retail participation remain moderate. At the time of reporting, Bitcoin traded around $104,625.
Bullish
The news underscores a historically strong correlation between global M2 liquidity increases and Bitcoin price growth, with multiple analysts forecasting significant upside for Bitcoin if liquidity conditions remain favorable. The projected scenario foresees a possible short-term correction, but the prevailing view is that expanding money supply provides a bullish foundation for sustained price appreciation, potentially leading to new highs and even triggering broader altcoin rallies. While there are notes of caution regarding central bank policies and real interest rates, the consensus among experts is that Bitcoin’s medium- to long-term trend remains upward as long as global liquidity is rising.