Bitcoin Price Could Surge to $150,000 as Rising M2 Money Supply Drives Liquidity Influx

On July 2, Forbes reported insights from Matt Mena, a cryptocurrency research strategist at 21Shares, highlighting a potential correlation between the rising M2 money supply and increased liquidity inflows into Bitcoin and other digital assets. The M2 money supply encompasses liquid financial assets such as cash, checking and savings deposits, and short-term instruments like money market funds, as tracked by the Federal Reserve. Historical trends indicate that Bitcoin’s price movements have closely mirrored changes in the M2 money supply, suggesting a macroeconomic influence on digital asset valuations. Additionally, cryptocurrency analyst Anthony “Pomp” Pompliano, who is spearheading a new Bitcoin acquisition firm, noted via email that if Bitcoin’s price trajectory continues to align with money supply growth, the cryptocurrency could potentially reach a valuation of $150,000 by year-end. These observations underscore the importance of monetary policy dynamics in shaping crypto market performance.