Bitcoin Equity Index Points To $110k Domestic BTC Peak By January 2025
Bitcoin has entered the “parabolic phase” of the market cycle, as analysts point to a domestic peak above $110,000 before the end of January.
The price of Bitcoin (BTC) could rise above $110,000 before the end of January, based on its correlation with the Global Macro Investor Total Liquidity Index, which provides an overview of all major central bank balance sheets.
The $110,000 price tag is a “local high” for the current bitcoin cycle, Raoul Pal, founder and CEO of Global Macro Investor, wrote in a Nov. 29 X post:
“There have been many simulations going around the wrong way on this chart. Here is an updated original from our Global Macro Investor work.
GMI Gross Liquidity Index, Bitcoin (RHS). Source: Raoul Pal
If the price of Bitcoin follows the Liquidity Index, Bitcoin's right-hand slope (RHS), which represents the lowest bid price at which someone can sell the currency, will peak around $110,000 before falling below $70,000 in January 2025.
Related: Bitcoin has been declared dead 415 times, now it is fighting for $100 thousand
Growing M2 money supply to fuel Bitcoin 2025 rally
The correction below $70,000 is only temporary due to what Pall calls “temporary liquidity” that it expects to continue to grow in the third quarter of 2025.
Biget Wallet Chief Operating Officer Alvin Kahn said the growing money supply is a historic boost to Bitcoin's value. He told Cointelegraph.
An increase in liquidity from the Fed will improve market conditions for risky assets such as Bitcoin. Historically, such an injection of liquidity has led to increased investor interest and capital inflows into cryptocurrencies.
Other analysts expect global liquidity to peak at the end of January 2026.
Based on historical data, Bitcoin can be set to absorb up to 10% of the newly printed money supply. This could attract $2 trillion in new investment to Bitcoin, based on an estimated $20 trillion increase in liquidity by 2025.
BTC/USD, 1-week chart, parabolic level. Source: Rect Capital
Based on the weekly chart above, Bitcoin has “fully transitioned into the parabolic uptrend phase of the cycle,” crypto analyst Rect Capital wrote in a Nov. 29 X post.
Related: Bitcoin Dominance Hints at ‘Altseason', Analysts See XRP Price Heading to 2025
Bitcoin will reach $132,000 in 2025 on the growing money supply
A growing money supply could push Bitcoin's price above $132,000 next year, according to a chart shared by Jamie Coates, chief crypto analyst at Real Vision.
“After a long time, I'm on this cycle; a 12-month forecast based on a direct relationship with liquidity. But Bitcoin cycles are not linear. I think we've reached a much higher level than that.”
BTC forecast on M2 money supply growth to $132,000. Source: Jammie Coutts
Aside from the growing money supply, the price of Bitcoin got a big boost from Donald Trump's victory in the US presidential election on November 5.
Trump's victory has fueled a new wave of risk appetite, which is expected to fuel the 2025 crypto rally. Bitfinex analysts told Cointelegraph:
If the Trump administration takes office and the industry benefits from an increasingly supportive regulatory environment, we expect all crypto assets to make new highs in the new year.
According to Adam Back, co-founder and CEO of Blockstream, creator of Hashcash and one of the most popular cryptocurrencies in the industry, Bitcoin could hit $1 million if the Trump administration approves a potential strategic bitcoin hoard.
Bitcoin Could Explode After $100K—Here's Why Source: YouTube
Magazine: Is Bitcoin Going Back To $90K? Solana ETFs, and more: Hodler's Digest, November 17 – 23
