Key takeaways<\/strong>:<\/p>\n Bitcoin could target $170K as global M2 money supply hits a record $55.48 trillion.<\/p>\n<\/li>\n BTC price historically lags M2 breakouts, with past patterns suggesting imminent upside.<\/p>\n<\/li>\n A weakening US dollar adds fuel for BTC bulls, with DXY down 10.8% in H1 2025.<\/p>\n<\/li>\n<\/ul>\n Bitcoin (BTC<\/a>) could be on track to reach $170,000 as global liquidity, measured by broad money supply (M2), hits a new record high of $55.48 trillion on July 2.<\/p>\n M2 aggregates US dollar-adjusted liquidity from the US, eurozone, Japan, the UK, and Canada. <\/p>\n When M2 rises, it indicates that more money is circulating<\/a> in the economy, including in bank accounts, checking deposits, and other liquid assets. Such surplus liquidity can increase capital flowing into \u201criskier assets\u201d like crypto.<\/p>\n Bitcoin has historically followed global and US M2 supply with a 3\u20136 month lag, especially during liquidity shifts. In some cases, like the April 2025 breakout above $100,000, the lag was just 1\u20132 weeks.<\/p>\n While BTC has rallied during low M2 growth, such moves often prove unsustainable.<\/p>\n In contrast, M2-driven rallies tend to produce longer, more stable uptrends, suggesting the current cycle may be supported by real liquidity, not speculation.<\/p>\n \u201cAs global money supply expands, Bitcoin\u2019s next target sits around ~$170K, following the flow,\u201d says analyst Crypto Auris<\/a>.<\/p>\n Multiple analysts have predicted the BTC price to reach the $150,000-200,000 range<\/a> by the 2025\u2019s end, owing to rising institutional demand via ETFs<\/a> and corporations<\/a>.<\/p>\n The growing demand for Bitcoin appears against a weakening US dollar.<\/p>\n The US Dollar Index (DXY) has fallen 10.8% in the first half of 2025, its worst H1 performance since the collapse of the Bretton Woods system in 1973. <\/p>\n In contrast, Bitcoin gained 13.25% in the same period, reflecting a negative correlation with the dollar. <\/p>\n Historically, major divergences between Bitcoin and the dollar<\/a> have signaled key trend reversals. <\/p>\n In April 2018 and March 2022, rising DXY and falling BTC preceded bear markets. While the divergence in November 2020 marked the start of a major rally.<\/p>\n In the current cycle, BTC and DXY have moved almost in lockstep until early 2024. A clear divergence began in April 2025, as DXY fell below 100 for the first time in two years. <\/p>\n\n
Bitcoin typically follows the M2 breakout<\/h2>\n
Weakening USD puts Bitcoin rally in play<\/h2>\n