Will Bitcoin Follow M2’s Breakout After Global Liquidity Hits $55.48T?

Bitcoin has historically surged after lagging M2 breakouts, often catching up with strong moves once global liquidity peaks.

Global M2 now sits at $55.48 trillion, rising steadily while Bitcoin consolidates—mirroring patterns that preceded previous BTC rallies.

Liquidity growth from easing policies points to a favorable setup, with Bitcoin possibly targeting $130K–$170K once momentum returns.

Global M2 money supply has reached a new all-time high of $55.48 trillion, adding pressure to Bitcoin’s recent consolidation phase. With a history of trailing global liquidity, Bitcoin may be positioned for a new upward breakout.

Bitcoin Lags Behind M2’s Historic Surge

A chart shared by Cointelegraph reveals a strong correlation between Bitcoin (BTC) and the Global M2 money supply. The M2, represented by a white line, shows a steady rise throughout 2024 and into 2025, entering a steep bullish channel. Meanwhile, Bitcoin, marked by the orange line, continues to follow the liquidity trend but with a slight delay.

Source CoinTelegraph

This lag has occurred in previous cycles. When M2 accelerated and Bitcoin stalled, the digital asset eventually followed with a sharp upward move. The present divergence between M2 and BTC resembles past conditions that preceded strong price rallies. Bitcoin’s current price of $106,972 remains below its potential based on historical patterns.

Yellow arrows included in the chart suggest both M2 and BTC are poised for further strength. Bitcoin may be on the verge of another breakout, supported by expanding global liquidity.

Macro Liquidity Conditions Favor a Bitcoin Breakout

The escalation of M2 is primarily the result of central banks easing, debt monetization and ongoing stimulus in the major economies. That money is flowing into global markets through those monetary activities, and generally supporting asset prices. For Bitcoin, a decentralized asset with a fixed supply, rising liquidity usually means rising demand.

Historically, Bitcoin has performed well in such environments, especially when lagging indicators like M2 push higher. With liquidity now entering new territory, the environment appears aligned with past cycles that resulted in major BTC uptrends.

Cointelegraph’s tweet underscores this correlation, stating: “Global M2 money supply hits a new all-time high of $55.48T. Will Bitcoin follow?”

Bitcoin May Target $130K–$170K If the Pattern Holds

If historical patterns persist, Bitcoin may be approaching a key breakout phase. Past divergences between M2 and BTC have preceded swift rallies once Bitcoin aligned with liquidity growth. Analysts now suggest possible targets between $130,000 and $170,000 in the coming months.

The current dip could act as a launchpad. Bitcoin’s long-term correlation with M2, combined with expanding global liquidity, continues to suggest a favorable setup.

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