Bitcoin is once again in the spotlight as analysts predict a potential surge to $130,000. Driven by the U.S.-EU trade pact, M2 money supply growth, and the upcoming FOMC meeting, Bitcoin’s momentum is building. Here’s what you need to know.
Bitcoin’s Bullish Catalysts: U.S.-EU Trade Pact and Geopolitical Stability
The recent U.S.-EU trade deal has been flagged as a significant bullish catalyst for Bitcoin. Analysts like Doctor Profit highlight its role in reducing geopolitical risks and fostering a stable economic environment. This stability could boost risk-on sentiment and institutional confidence in Bitcoin.
M2 Surge: How Monetary Expansion Fuels Bitcoin’s Rally
The M2 money supply has seen a 2.3% year-to-date increase, with a 0.63% surge between May and June—the largest monthly jump in 2025. Historically, Bitcoin has correlated with M2 expansion, and a 15-17.5% rise to above $130,000 could be on the horizon.
FOMC Outlook: What to Expect from the Federal Reserve
The upcoming FOMC meeting introduces uncertainty. While the Fed maintains a hawkish stance, there’s a growing disconnect between Chair Jerome Powell’s rhetoric and the Fed’s liquidity expansion. This could hint at future quantitative easing, a move that has historically bolstered Bitcoin.
Bitcoin Supply Dynamics: Institutional Demand vs. Whale Activity
Short-term fluctuations, like the recent dip to $114,500, were attributed to a “shakeout” rather than weakness. Strong ETF inflows and institutional demand, led by entities like BlackRock, continue to outpace Bitcoin’s daily issuance, reinforcing underlying demand.
Conclusion: A Multifaceted Backdrop for Bitcoin’s Future
The convergence of geopolitical stability, monetary expansion, and central bank policy creates a compelling case for Bitcoin’s near-term outlook. Analysts are closely watching technical levels and macroeconomic indicators for confirmation of sustained momentum.
Frequently Asked Questions (FAQs)
What is driving Bitcoin’s potential surge to $130K?
The U.S.-EU trade pact, M2 money supply growth, and institutional demand are key factors.
How does the M2 surge impact Bitcoin?
Historically, Bitcoin has rallied during periods of monetary expansion, as seen in 2020.
What role does the FOMC play in Bitcoin’s price?
The Fed’s policies, especially quantitative easing, have historically boosted Bitcoin’s performance.
Is the recent Bitcoin dip a cause for concern?
Analysts view it as a “shakeout” rather than a sign of weakness, with strong underlying demand.
