Bitcoin Could Attract $2 Trillion in Investments by 2025 Amid Global Liquidity Surge

Bitcoin (BTC) may experience a significant surge in demand in 2025, with projections suggesting the cryptocurrency could draw in an additional $2 trillion in investments. This surge is expected as the global money supply grows to a staggering $127 trillion, up from $107 trillion today. The increase of $20 trillion in liquidity, driven by continued injections from the U.S. Federal Reserve, is poised to be a key catalyst for Bitcoin’s price.

Jamie Coutts, the chief crypto analyst at Real Vision, highlights that the global money supply is projected to rise by 18% in the next couple of years, potentially leading to Bitcoin attracting 10% of this new liquidity. Historically, Bitcoin has captured about 10% of newly created money, which would translate into a $2 trillion inflow into the cryptocurrency market by 2025.

Coutts pointed out that Bitcoin’s market capitalization increased fivefold between late 2022 and 2024, from $94 trillion in global M2 (the total money supply in the economy) to $105 trillion. During this period, Bitcoin’s market cap expanded by $1.5 trillion, with 10% of this new money supply flowing into the cryptocurrency, further cementing Bitcoin’s role as a reserve asset in a global economy facing increasing inflation.

Bitcoin’s Role in a World of Monetary Expansion

As the world’s central banks, particularly the U.S. Federal Reserve, continue to inject liquidity to address ongoing economic challenges, institutional interest in Bitcoin is expected to grow. Bitcoin's impressive performance, boasting annual returns of over 100%, has outpaced traditional investments, positioning it as an attractive hedge against the debasement of fiat currencies. The expansion of the money supply, combined with the potential weakness of the U.S. dollar, is expected to fuel a rally in Bitcoin’s price.

Some analysts forecast that Bitcoin could reach $150,000 by 2025, driven by these macroeconomic trends. Ryan Lee, Chief Analyst at Bitget Research, suggests that Bitcoin’s bull cycle could peak between late 2024 and mid-2025, with price targets ranging from $118,928 to as high as $130,000–$150,000 by the end of 2025. This forecast is based on the current market sentiment and the cryptocurrency’s technical patterns, which point to continued upward momentum.

A Conservative Estimate? VanEck Predicts Even Higher Bitcoin Prices

Several analysts believe that Bitcoin’s potential could far exceed these projections. For example, investment firm VanEck has suggested that Bitcoin could reach upwards of $180,000 within the next 18 months, fueled by increasing optimism in the market. The potential for Bitcoin to exceed this price level could trigger massive short squeezes, with over $1 billion in leveraged short positions set to be liquidated across exchanges, according to data from CoinGlass.

As the global money supply expands and inflationary pressures continue to rise, Bitcoin's role as a store of value and its appeal to both institutional and retail investors alike could make 2025 a pivotal year for the cryptocurrency. Whether Bitcoin achieves a $2 trillion influx of capital or surpasses even the most optimistic projections, its growing prominence in global financial markets is undeniable.