the latest <a target="_blank" href="https://x.com/Jamie1Coutts/status/1861662465010082101″ target=”_blank” rel=”noopener nofollow”>knowledge Experts have revealed that bitcoin is set to benefit from a massive liquidity injection projected for 2025, which could attract $2 trillion in new btc investments.
This prediction arises from expectations that the US Federal Reserve will significantly increase the global money supply, which could boost the market capitalization and price performance of btc.
bitcoin Market Liquidity Growth and Implications
According to Jamie Coutts, chief crypto analyst at Real Vision, the global money supply, also known as M2, is expected to grow from its current $107 trillion to over $127 trillion in 2025. This 18% increase in Liquidity, driven by economic factors and monetary policies, can act as a critical catalyst for btc.
Coutts highlights that btc has historically captured around 10% of newly injected liquidity, suggesting that the cryptocurrency could see significant inflows during this next period.
Coutts explained that btc's performance is closely linked to liquidity movements in the global financial system. Historical data reveals that between the fourth quarter of 2022 and the present, the global M2 money supply increased from $94 trillion to $105 trillion.
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Global M2 bottomed at $94 trillion in Q4 2022 and has since risen to $105 trillion. During this period, bitcoin's market capitalization increased fivefold, adding $1.5 trillion. In other words, 10% of the new money supply has leaked from the fiat system to bitcoin's emerging global reserve asset (gold, stocks, etc.). pic.twitter.com/w0vWIMufbg
– Jamie Coutts CMT (@Jamie1Coutts) <a target="_blank" href="https://twitter.com/Jamie1Coutts/status/1862006636434583927?ref_src=twsrc%5Etfw” target=”_blank” rel=”noopener nofollow”>November 28, 2024
During the same period, bitcoin's market capitalization quintupled, totaling $1.5 trillion. These figures indicate that bitcoin absorbed approximately 10% of the new liquidity entering the system, reinforcing its role as an emerging global reserve asset.
With the projected liquidity increase of $20 trillion in 2025, bitcoin could potentially attract $2 trillion in new investments. Coutts' analysis highlights that currency debasement, coupled with bitcoin's annualized outperformance exceeding 113%, will likely improve institutional adoption of the cryptocurrency.
This trend positions btc as an “increasingly attractive alternative” to traditional investment vehicles, particularly as concerns persist over the strength of the fiat currency.
bitcoin Outlook 2025 and Institutional Adoption
Coutts further predicts that the global M2 money supply will peak on January 26, 2026, as economic policies continue to expand monetary bases.
This timeline aligns with forecasts that the btc price could reach $150,000 in 2025. This growth is expected to be fueled by weakening confidence in the US dollar and the broader fiat system, which will encourage investors to look for alternative stores of value.
Notably, institutional interest in btc is also likely to increase as the asset proves its resilience and profitability. With a growing reputation as a hedge against inflation and monetary debasement, bitcoin may appeal to a broader range of investors seeking stability amid economic uncertainty.
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