Bitcoin’s Next Bull Run? Analyst Links M2 Lag to $130K Price Surge

Brace for impact—Bitcoin's price engine just got a turbocharge. A bold new analysis ties the M2 money supply lag to a potential breakout toward $130,000. Here's why the charts are flashing green.

The M2 Factor: How Delayed Liquidity Could Fuel BTC's Ascent

When central banks print, crypto eats last—but it always gets fed. The 18-24 month delay between money supply expansion and Bitcoin's price reaction suggests we're entering the sweet spot. Traders stacking sats now might just front-run the institutional herd.

Technical or Fundamental? Why This Rally Could Have Teeth

Forget meme-driven pumps. This setup combines on-chain metrics with macroeconomic forces—the kind of convergence that turns resistance levels into afterthoughts. The $130K target isn't moon math; it's the mid-point of historical money supply correlations (though since when do crypto markets follow textbooks?).

Warning Lights Amid the Rally Signals

Yes, Wall Street's still trying to short Bitcoin with one hand while lobbying for ETF approvals with the other. But with M2 finally catching up to the Fed's money printer go brrr era, even the suits might have to concede this rally's fundamentals. Just don't expect them to admit it during their next CNBC appearance.

Bitcoin Price Poised For Growth After Major Trade Deal

In a recent post on the social media platform X (formerly Twitter), Doctor Profit highlighted a significant technical development for the Bitcoin price, noting that the cryptocurrency has recently broken through a diagonal resistance line on its monthly chart—a barrier that had proven insurmountable for several months.

According to the analyst, the bitcoin price faced repeated rejections at this crucial resistance level from November 2024 through February 2025. 

However, this month marked a decisive breakout for the cryptocurrency, followed by a successful retest of the $114,000 level last Friday and a “strong bullish impulse” forming. 

Doctor Profit emphasized that this breakthrough signals a potential upward movement, asserting that the market is primed for the next leg up. He even predicts that the “bullish chart” will soon dominate discussions across social media.

Adding to this Optimism are recent developments surrounding a US-Europe trade deal announced on Monday by the White House. Doctor Profit noted that tariffs have been a lingering concern for both the Bitcoin price and the broader stock market, suppressing momentum. 

However, the analyst asserts that the announcement of a new trade agreement—valued at $750 billion in US energy exports and $600 billion in EU investments—has alleviated some of that pressure. 

Links Between M2 Money Supply And BTC’s Potential

On a macroeconomic level, Doctor Profit highlighted the M2 money supply as a crucial factor influencing the Bitcoin price trajectory. Following a 25% expansion of M2 in 2020 due to pandemic-related measures, Bitcoin experienced an 800% rally. 

Currently, M2 has increased by 2.3% since the beginning of 2025, despite ongoing quantitative tightening measures by the Federal Reserve (Fed). The analyst  believes that this indicates that the Fed may be poised to adopt more aggressive monetary policies in the NEAR future.

Historical data suggests a correlation between increases in M2 and bitcoin price movements, with the analyst estimating a potential upside of 30-35% for Bitcoin with every 1% increase in M2. 

The most significant expansion has occurred in recent months, particularly between May and June 2025, when M2 saw a monthly increase of 0.63%. 

Given Bitcoin’s typical lag in response to M2 changes—approximately 60 to 90 days—there is speculation that this could lead to a 15-17.5% rally in the coming weeks, positioning Bitcoin toward the $130,000 mark.

Looking ahead, the Federal Open Market Committee (FOMC) meeting is slated for Wednesday, with a strong expectation of no interest rate cuts.

As of this writing, the market’s leading cryptocurrency trades at $117,569, up nearly 71% on a year-to-date (YTD) basis. 

Featured image from DALL-E, chart from TradingView.com