US Debt $37T & M2 Growth Dey Fuel Bitcoin Rally Reach $132K
US federal debt don reach record $37 trillion afta President Trump sign one Big Beautiful Bill Act on July 4. Di rise for US debt plus expectation for quantitative easing don make dem raise forecast for M2 money supply growth.
Since 2020, US debt don waka up 38% from $26.7 trillion go reach $37 trillion, as Bitcoin price don jump 925%. Bitget chief analyst Ryan Lee talk say US debt expansion dey directly related to Bitcoin price gain, say as deficit dey swell e go force liquidity measures wey dey carry asset rallies go up.
Real Vision analyst Jamie Coutts project say if M2 money supply continue grow e fit carry Bitcoin reach $132,000 by late 2025. Meanwhile BitMEX co-founder Arthur Hayes warn say fresh quantitative easing program fit make Bitcoin go as high as $250,000. Elon Musk add say new spending law fit add $2.5 trillion to US deficit.
More money printing plus worry about inflation fit make Bitcoin look sweet as scarce digital asset. Traders suppose dey watch US debt trend, Fed policy plus M2 money supply data well well cause these macro factors still be big drivers for Bitcoin price outlook.
Bullish
Di rekord wey US federal debt don reach $37 trillion plus di chance sey dem go do quantitative easing again na some of di strongest reasons wey fit make Bitcoin go up. Big deficits plus di expansion of M2 money supply for history don make investors dey move towards scarce assets wey make prices go up. Ryan Lee for Bitget show sey US debt level get direct connection with how Bitcoin price dey move, and forecasts from Jamie Coutts ($132,000 by late 2025) and Arthur Hayes (fit reach $250,000 if dem do new QE) dey show sey Bitcoin get strong potential to go up. For short term, Bitcoin fit get more wahala with volatility when fiscal and monetary data dem show, but di overall increase for macro liquidity and inflation pressure na why dem still see better long-term bullish outlook.