Why Bitcoin May Be On The Brink Of A Historic Breakout

"Bitcoin trading between $117,800 and $118,102 in the past 24 hours—looks set to capture serious upside in 2025 as liquidity floods into assets."

This is signaling consolidation just beneath key psychological resistance. This price action is occurring alongside a macroeconomic shift: liquidity is pouring into the global financial system.

Global M2: The Liquidity Tsunami

M2 money supply is a critical indicator of liquidity in the global economy, encompassing cash, checking deposits, and easily convertible near-money assets. The recent expansion of global M2 to nearly $96 trillion—its highest level ever—is not just a numerical milestone. It's a signal.

When M2 grows, excess capital searches for yield. In low-rate or uncertain economic environments, that capital tends to flow into alternative stores of value. Historically, real estate, gold, and equities have served this role. But since 2020, Bitcoin has steadily joined their ranks.

M2 is the biggest and best indicator for where Bitcoin prices are headed,

This isn't just speculative euphoria, it's driven by structural adoption. From sovereign wealth funds to asset managers and retail investors, more capital allocators are viewing Bitcoin as a macro asset rather than a tech experiment.

Why Bitcoin Is Built for Liquidity Booms

Bitcoin, by design, thrives in environments of expanding fiat liquidity. With its capped supply of 21 million coins and deterministic issuance schedule, it represents a stark contrast to the ever-inflating supply of fiat currencies.

Liquidity doesn't just float equally. Assets with high volatility, asymmetric upside, and strong narratives tend to benefit most. Bitcoin checks all three boxes.

In previous cycles, Bitcoin saw exponential gains after periods of monetary expansion:

1. After the 2020 pandemic stimulus and M2 surge, Bitcoin climbed from $10,000 to over $60,000 in under a year.
2. In the 2017 cycle, following years of loose central bank policy, Bitcoin rallied from under $1,000 to nearly $20,000.

Now, with global M2 hitting new highs again and with 2025 shaping up to be a year of rate cuts and fiscal expansion , Bitcoin's historical playbook may be unfolding once more. So get ready.

On-Chain Data Signals Accumulation

Beyond macro liquidity, on-chain data adds further fuel to the bullish thesis. Bitcoin Magazine Pro , Glassnode and CryptoQuant metrics show rising exchange outflows, dormant coins holding firm, and a steady increase in long-term holders. MVRV Z score is also heading up.

This pattern of accumulation often precedes parabolic moves, especially when accompanied by rising network activity and decreasing available supply on exchanges.

Recent ETF inflows particularly from U.S. institutions, are absorbing spot BTC at a rate faster than miners can produce. This supply-demand imbalance, when layered atop a macro backdrop of liquidity expansion, sets up a textbook environment for explosive price appreciation.

The 2025 Setup: Halving, Macro Tailwinds, and M2 Momentum

Several converging factors make 2025 particularly promising and its all happening together:

1. Bitcoin Halving (April 2024): Historically, halvings lead to price rallies 12–18 months afterward. 2025 falls right in the expected post-halving rally window.
2. Central Bank Easing: The Fed and other central banks are expected to cut rates or at least pivot from tightening in 2025. Liquidity-sensitive assets like Bitcoin typically benefit.
3. Global M2 Surge: As inflation stabilizes but debt levels remain high, governments are under pressure to stimulate. That means more money creation, which often finds its way into hard assets.

Taken together, these create a "perfect storm" for Bitcoin price expansion.

Conclusion: A Breakout Brewing?

Bitcoin's tight consolidation just under $120,000, combined with an all-time high in global M2, should not be ignored. The macro liquidity cycle is shifting from restraint to expansion , and Bitcoin, as a liquidity-sensitive asset with fixed supply, is well positioned to benefit.

While past performance never guarantees future results, historical patterns suggest that when global M2 soars, Bitcoin doesn't just rise—it erupts.

Disclosure: The Author has a BTC investment

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.

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