Bitcoin Looks Poised for Fresh Rally as Money Supply Swells

Bitcoin is regaining momentum as the global M2 money supply climbs to new highs.

Written by: Sophia Cruz • Thursday, July 3, 2025 • 1 min read

• Last updated: Thursday, July 3, 2025

Quick overview

Bitcoin is gaining momentum as the global M2 money supply reaches new highs, historically signaling potential price rallies.
Current M2 levels are nearing 55 trillion dollars, with Bitcoin trading between 107,000 and 109,000 dollars, suggesting a possible launchpad for further gains.
Analysts predict that if the correlation with money supply holds, Bitcoin could climb to targets of 119,000 dollars or even higher, with optimistic scenarios reaching 150,000 to 170,000 dollars.
The rise in Bitcoin futures open interest and stable funding rates indicates growing investor confidence and a favorable environment for a fresh rally.

Bitcoin is regaining momentum as the global M2 money supply climbs to new highs.

This surge in liquidity has historically been a reliable signal for Bitcoin rallies, and many analysts believe the pattern could repeat in the coming months.

When M2 expands, Bitcoin has often followed with a price increase. The lag time typically ranges from a few weeks to several months. With current M2 levels nearing 55 trillion dollars, Bitcoin has been hovering between 107,000 and 109,000 dollars. Analysts suggest this zone could serve as a launchpad for further gains.

Historically, periods of sharp M2 growth have coincided with major upward moves in Bitcoin. For example, previous M2 surges were followed by rallies that pushed Bitcoin to record highs. The current setup looks familiar, and some forecasts suggest a possible climb to 119,000 dollars or even higher. Optimistic scenarios point toward targets of 150,000 to 170,000 dollars if the correlation with money supply continues to hold.

Adding strength to this narrative, Bitcoin futures markets have seen a 10 percent increase in open interest, translating to about 3.2 billion dollars in new positions. This rise in futures activity reflects growing investor confidence, particularly from institutions. At the same time, stable funding rates suggest the market is not overly leveraged, which is often a sign of more sustainable growth.

Despite minor pullbacks to around 105,000 dollars, market sentiment remains positive. The alignment of rising liquidity, increasing institutional interest, and a strong technical foundation indicates Bitcoin is well-positioned for a fresh rally.

This environment presents a strategic opportunity. With liquidity expanding and historical patterns favoring upside movement, Bitcoin can be a valuable consideration when advising clients on portfolio diversification. As macroeconomic factors continue to shift, keeping an eye on monetary indicators like M2 can offer valuable insights into crypto market momentum.

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ABOUT THE AUTHOR See More

Sophia Cruz

Financial Writer - Asian & European Desks

Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.