- Bitcoin’s price continues to rise alongside a sharp expansion in global M2 liquidity.
- Analysts expect altcoins to rally next as liquidity expansion fuels crypto market momentum.
- Bitcoin recently broke above $110K as macro trends support broader crypto market strength.
Bitcoin is rising again, and this time it’s moving in sync with a powerful macro trend, global liquidity. On-chain analysts and macro experts say the cryptocurrency’s price action is closely tracking the growth in global M2 supply.
M2 represents the total money supply, including cash, checking accounts, and near-money assets. As of May 2025, global M2 has risen sharply, approaching record levels, according to the chart shared by analyst CryptoJack. This indicator has historically shown a strong correlation with Bitcoin’s long-term price action.
From December 2024 to April 2025, global M2 declined slightly. During that time, Bitcoin also consolidated and lost some short-term momentum. Nevertheless, from April 2025, both have rebounded and started rising in nearly identical ways.
Altcoins Could Follow BTC Momentum
Bitcoin is trading around $109K, losing more than 0.2% in 24 hours, at press time. Crypto analysts believe rising M2 levels often create a risk-on environment, pushing capital into volatile assets like Bitcoin. Historically, BTC rallies first, followed by capital rotation into large-cap altcoins like Ethereum and Solana.
If the trend continues, mid and small-cap altcoins could also see a strong uptrend. This follows a three-phase pattern: M2 rises, BTC rallies, altcoins surge.
The sentiment reflects that liquidity increases the interest in decentralized and inflation-resistant assets. Central banks have been pumping more money into the system, boosting global liquidity rapidly over the past few months. Trillions of new dollars, euros, and yen have entered circulation, boosting the monetary base.
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Bitcoin’s historical lag to M2 is about 12 weeks. If that pattern holds, Bitcoin could see more upside into Q3 2025. Bitcoin recently pulled back to $107,500 before bouncing back above $110,000. The uptrend remains intact as long as BTC holds above $104,000. The $102,000–$104,000 range remains a critical support zone for bulls. If M2 liquidity continues rising, Bitcoin may push beyond its current high. As macro liquidity expands, digital assets appear poised to benefit, starting with Bitcoin and possibly followed by altcoins.
