Bitcoin could attract $2 trillion amid global money supply growth
Bitcoin Outlook
Bitcoin may receive $2 trillion in investments by 2025, driven by the U.S. Federal Reserve’s plan to expand the global money supply to $127 trillion—an 18% increase from the current $107 trillion.
According to Jamie Coutts, chief crypto analyst at Real Vision, the $20 trillion liquidity boost could propel Bitcoin’s price to $97,303 in 2025, attracting significant new investments. Historical data suggests that around 10% of newly created money tends to flow into Bitcoin.
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In a post on X, Coutts highlighted that global M2—the measure of cash and short-term deposits—bottomed at $94 trillion in Q4 2022 and has since grown to $105 trillion. During the same period, Bitcoin’s market cap quintupled, adding $1.5 trillion. This trend reflects Bitcoin's growing role as an emerging global reserve asset, with 10% of new money shifting away from fiat currencies into Bitcoin.
Coutts projects the global M2 money supply will peak on January 26, 2026. This monetary expansion is expected to accelerate institutional adoption of Bitcoin, which has delivered annual returns exceeding 113%, outpacing traditional investment options.
What is M2?
Global M2 money supply measures cash, demand deposits, and short-term savings accounts. Unlike the narrower M1 aggregate, which includes only cash and demand deposits, M2 covers a broader spectrum of liquid assets.
On a global scale, M2 aggregates monetary data from different economies, providing insights into liquidity trends in the financial system. Central banks often influence M2 to stimulate or restrict economic activity, directly impacting asset valuations, inflation trends, and the adoption of cryptocurrencies like Bitcoin.
Meanwhile, institutional and corporate interest is boosting Bitcoin's prospects amid bullish sentiment.
