Bitcoin Price Poised For Breakout As Liquidity Expands

"The global M2 money supply has historically shown a strong link with Bitcoin cycles. Expansion tends to coincide with bull markets, while contraction or stagnation has lined up with periods of chop and downside. Over the past few months, Global M2 growth has slowed, and BTC has mirrored that with stagnant price action after hitting an all-time high near $124,000. When Global M2 accelerates again, it has consistently flowed into speculative assets, with Bitcoin one of the biggest beneficiaries."

"Stablecoin supply within the crypto ecosystem has proven to be an even stronger indicator than Global M2. Correlations with BTC have reached above 95%, and on a year-on-year basis the alignment remains near perfect. When the rate of change in stablecoin supply crosses above its 90-day moving average, it has historically signaled an ideal period to accumulate bitcoin ahead of strong rallies. The opposite has held true as well, with contractions lining up with periods of weakness."

"Throughout 2025, Bitcoin has most closely tracked Gold with about a 40-day lag, showing a correlation of over 92%. Gold's relentless push to new all-time highs this year has provided a tailwind for BTC, which often follows as investors rotate into harder and more speculative assets. If this relationship holds, BTC could see a breakout toward $150,000 in early November."

Bitcoin has been trading sideways for months while key liquidity indicators closely tracked that stagnation. Global M2 growth slowed recently and BTC mirrored the slowdown after reaching an all-time high near $124,000; historical M2 acceleration has tended to flow into speculative assets including Bitcoin. Stablecoin supply shows correlations above 95% with BTC and when its rate of change crosses above the 90-day moving average it has historically signaled strong accumulation opportunities ahead of rallies. Bitcoin tracked Gold in 2025 with a roughly 40-day lag and over 92% correlation, suggesting a potential breakout toward $150,000 in early November if the relationship persists. The US Dollar has shown recent strength, presenting a countervailing factor.

Read at Bitcoin Magazine