- Bitcoin prices have remained stable since May, despite earlier gains in the year.
- The U.S. M2 money supply reached a record $22 trillion, named as a possible driver for future Bitcoin increases.
- Analysts expect that higher money supply could push Bitcoin toward $150,000 per coin by year-end if current trends continue.
- Federal Reserve Chair Jerome Powell stated that interest rates remain on hold, partly due to trade tariffs implemented by President Donald Trump.
- Some experts say the Federal Reserve will only consider rate cuts if there is a notable decline in U.S. employment figures.
Bitcoin prices have stayed steady since May, following a period of rapid growth earlier in President Donald Trump’s second term. Traders and market analysts point to upcoming developments and policy changes as possible influences on future prices.
The U.S. M2 money supply—an estimate that includes cash, checking, savings accounts, and short-term money market funds—has now reached $22 trillion. Analysts are watching this increase closely, with some suggesting it could drive new buying in Bitcoin and other cryptocurrencies.
Matt Mena, a strategist at 21Shares, noted, “As M2 money supply begins to rise again, history suggests that a portion of this liquidity will flow into bitcoin and other digital assets.” Anthony “Pomp” Pompliano, a cryptocurrency investor, wrote, “If bitcoin continues to follow money supply growth, we could see $150,000 per coin before year end.” Both experts reference past trends, where increases in available money have often aligned with stronger crypto markets. More details about M2 and its tracking can be found on this chart.
The Federal Reserve has left interest rates unchanged following a reduction cycle that started in September. Jerome Powell, chair of the Federal Reserve, said during a panel discussion that the size of President Trump’s trade tariffs has impacted the decision to keep rates steady. Powell explained, “In effect we went on hold when we saw the size of the tariffs… Essentially all inflation forecasts for the United States went up materially as a consequence of the tariffs. We didn’t overreact, in fact we didn’t react at all. We’re simply taking some time.” Full coverage of Powell’s remarks is available at The Guardian.
David Morrison, senior market analyst at Trade Nation, added, “It’s clear that the Fed expects inflation to continue above target. That being the case, it sounds as if the Fed will only cut rates if the U.S. employment situation deteriorates significantly.”
The rise in the M2 money supply and ongoing high interest rates have become major subjects for crypto investors evaluating the path forward. Forecasts for a “big” July remain, as key financial and policy events approach.
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