As the year progresses, Bitcoin (BTC) $107,392 is making remarkable strides, seeing a notable increase. Within the past month, Bitcoin surged by 16%, and over the last week, it rose by 3.3%, currently trading above the $109,000 mark. A new analysis based on research suggests that Bitcoin might reach $135,000 by July, driven by its correlation with the M2 money supply. The emerging price graph clearly indicates that liquidity is on the rise, with Bitcoin trailing this increased liquidity by a few weeks.
M2 Money Supply and Bitcoin
M2 is a broad indicator of money supply, encompassing cash, demand deposits, savings accounts, and money market funds. According to the U.S. Federal Reserve’s data, M2 recently increased by 2.7%, rising from $107.5 trillion to $110.72 trillion. A high money supply suggests a heightened risk appetite in the market. Bitcoin and altcoins are among the quickest assets to react to this cycle.

Cryptocurrency analyst Wise Advice highlighted a 10-12-week delayed correlation between M2 and Bitcoin since 2023. For instance, M2 peaked in October 2024, and ninety days later, Bitcoin touched $109,000 on January 20, 2025. Conversely, a drop in M2 in January led Bitcoin’s price to fall to $74,000 by April. The expert anticipates a similar scenario might soon unfold.
Bitcoin Targeting $135,000 and the Altcoin Market
If the model holds true, Bitcoin is expected to gain at least 24% in value over the next eight weeks, reaching $135,000. Such a surge would further fuel the robust macro liquidity, augmented by spot ETF entries. This market psychology could place investors in a dilemma about whether to distance themselves or dive in.
This bullish forecast isn’t exclusive to Bitcoin. The liquidity influx typically revitalizes the altcoin market. As the market leader gains momentum, risk appetite unfolds in a chain reaction.
Analysts recall the mini altcoin season at the end of 2021, anticipating a similar domino effect. In such a scenario, especially high-beta altcoins might witness an explosion in volume.