Bitcoin’s Explosive Ascent: $37T US Debt & M2 Growth Propel Price to $132K

The cryptocurrency world is buzzing with a significant new forecast. A record-breaking $37 trillion US national debt combined with surging M2 money supply growth may set the stage for an unprecedented Bitcoin price prediction. This confluence of macroeconomic factors could drive Bitcoin to a remarkable $132,000 by 2025.

The Soaring US National Debt and its Implications

The United States federal debt recently surpassed a staggering $37 trillion. This new record fuels ongoing discussions among financial analysts. Many believe rising deficits could underpin a substantial Bitcoin rally in the coming years. Representative Thomas Massie highlighted this milestone in a recent X post. He noted the debt officially passed the $37 trillion mark. This occurred a month after former US President Donald Trump signed the “One Big Beautiful Bill Act” into law. Trump had claimed this act would cut federal spending by $1.6 trillion.

However, the debt continued to climb. Swelling deficits can eventually prompt looser monetary policies. This includes measures like quantitative easing (QE). QE involves large-scale bond purchases by central banks. Such actions inject significant liquidity into the financial system. Bitcoin advocates argue that an expanding money supply and growing inflation concerns may renew recognition of Bitcoin’s monetary scarcity. This scarcity could push the world’s first cryptocurrency to new all-time highs.

Experts Outline Path to a $132,000 Bitcoin Price Prediction

US Treasury data reveals a substantial increase in national debt. The debt surged from $26.7 trillion in 2020 to over $37 trillion today. This marks a 38% rise in just five years. Bitcoin, conversely, experienced over 925% growth during the same period. Ryan Lee, chief analyst at Bitget crypto exchange, notes Bitcoin’s historic price growth directly correlates with US debt. He states, “Ultimately, this will impact the American monetary system as a considerable amount of cash will be deployed into servicing this debt.” Lee adds, “The more the debt grows, the higher the likelihood of BTC price soaring to new highs.”

Furthermore, some analysts suggest the US government might even explore Bitcoin as a solution for its “massive national debt.” Lee believes the “odds are stacked in favor of Bitcoin.” Elon Musk also criticized the spending bill in a June 5 X post. He warned it would “increase the deficit to $2.5 trillion.”

M2 Money Supply Growth: A Key Catalyst

Servicing the growing national debt could also lead to an increase in the global M2 money supply. This expansion may become the next significant catalyst for Bitcoin’s price. Jamie Coutts, chief crypto analyst at Real Vision, provided estimates based on Bitcoin’s correlation with M2. He suggests the expanding money supply could push Bitcoin above $132,000 before the end of 2025. This projection relies on the observed relationship between Bitcoin and the fiat supply. Despite this substantial figure, some perspectives offer even higher targets.

Quantitative Easing and the Bitcoin Rally

The growing inflation and increasing M2 money supply may catalyze Bitcoin’s rally to the $132,000 high. This could happen before 2025 concludes. This estimate remains modest, however, compared to other predictions. Arthur Hayes, co-founder of BitMEX and chief investment officer at Maelstrom, offers a bolder forecast. He predicts Bitcoin could climb to $250,000. This scenario depends on the US Federal Reserve pivoting to quantitative easing due to escalating inflationary pressures. Such a move would significantly inject liquidity into the economy. Historically, increased liquidity often correlates with rising asset prices, including cryptocurrencies.

Looking Ahead: Bitcoin’s Future Trajectory

The interplay between rising US national debt, expanding M2 money supply, and potential central bank responses like quantitative easing paints a compelling picture for Bitcoin’s future. These macroeconomic shifts reinforce Bitcoin’s appeal as a scarce asset. Many investors view it as a hedge against inflation and currency debasement. While specific price targets vary, the underlying drivers suggest continued upward pressure. The cryptocurrency market watches closely as these financial dynamics unfold, anticipating the next major move for Bitcoin.