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    Potential Bitcoin rally to six figures in 2025 driven by increased money supply and economic factors, says Real Vision’s Jamie Coutts

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    The global increase in the money supply and a potential drop in the US dollar may trigger a significant Bitcoin rally in 2025, potentially seeing its value hit six figures, according to Jamie Coutts, chief crypto analyst at Real Vision. The M2 money supply, coupled with factors such as increased investment to combat inflation, the victor of the US presidential elections, and MicroStrategy’s ongoing Bitcoin purchases, could all contribute to a surge in Bitcoin’s value. However, Coutts warns that the Dollar Index’s position could negatively impact “risk assets”.

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    The rise in the worldwide money supply along with a possible drop in the US dollar might lead to a surge in Bitcoin’s value in 2025. Analysts predict that its valuation could reach a six-figure sum.

    On November 22, Bitcoin (BTC) was just $200 short of breaking through the all-time high of $100,000, before it went back down by around 7%. Some analysts speculate that Bitcoin might even go down by another 30%.

    However, an increased global money supply and a possible drop in the value of the US Dollar Index could ignite a massive Bitcoin rally in 2025. This idea comes from Jamie Coutts, the chief crypto analyst at Real Vision, who shared his view in a November 27 post.

    Coutts suggested that the M2 money supply, which accounts for all money and short-term bank deposits in the US, would be crucial for Bitcoin’s next move up due to its historical relationship with Bitcoin’s value.

    In May, the M2 money supply showed year-over-year increase for the first time since November 2023. This change pushed investors to look for ways to protect their wealth from inflation, like buying Bitcoin, which has seen its value go up by 58% since the money supply growth.

    Bitcoin might also see an advantage from increases in the global M2 supply, which is expected to rise due to more money being printed by the US Federal Reserve.

    Due to potential concerns about the availability of money, the Fed might increase the worldwide money supply to over $127 trillion by 2025, up from the current $107 trillion. This could increase its size by up to 18%. This could push Bitcoin’s price to over $132,000 next year, according to an infographic shared by Coutts.

    He also said, “Longer term, this is where I am at for this cycle; a 12-month forecast based on linear relationship with liquidity. But Bitcoin cycles are not linear. I think we go much higher than this.”

    Still, Coutts observed that the DXY is at a crucial point of resistance. If it breaks through this, it could adversely affect “risk assets”.

    Price of Bitcoin also saw an uplift from Donald Trump’s victory in the November 5 US presidential election.

    Trump’s win also caused an increase in risky decision-making and could further boost the 2025 crypto rally, Bitfinex analysts told Cointelegraph.

    Bitcoin might also profit from MicroStrategy’s continuous purchase of Bitcoin after the company’s recent raise of $3 billion, which it plans to use to buy even more BTC.

    Meanwhile, Bitcoin is nearing one million daily active addresses for the first time since 2019, which is another positive sign for the adoption of the world’s first cryptocurrency that could contribute to more increasing value.

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