As 2025 begins, the crypto market is showing signs of recovery from the late December correction, setting a tone of optimism for the coming year. Bitcoin, the market leader, showed remarkable resilience by holding strong support at $92,000 despite recent selling pressure. This stability has revived investor confidence, with many looking to continue their upward trajectory.
Top analyst Axel Adler recently shared some insightful data, underscoring the importance of global currency trends in Bitcoin’s growth. According to Adler, the influx of global capital—albeit with a slight delay—will provide a significant boost to BTC in the coming months. This is in line with broader expectations of growing institutional interest and the growing recognition of BTC as a hedge against macroeconomic uncertainty.
As the broader market begins to wake up, Bitcoin appears well-positioned to capitalize on this renewed momentum. Analysts and investors alike are closely monitoring its price action, especially since it remains above the key $92K support. If this level holds, BTC may be poised for a new rally, possibly retrieving all-time highs and setting the stage for a strong 2025. For now, all eyes are on the market leader as he navigates this crucial period.
Bitcoin Growth Fueled By M2
Bitcoin has historically experienced significant growth every time the global money supply (M2) starts to rise, and this correlation has drawn the attention of analysts and investors who expect a large BTC rally in the near future. Analysts believe that BTC is set to benefit from the continued expansion of the global economy.
A compelling chart shared by CryptoQuant analyst Axel Adler on X highlights this correlation, showing the price of BTC alongside Global Liquidity M2 on a daily basis. The chart reveals a clear connection between the two, with a significant lag of 4-6 months between the increase in M2 and the increase in the price of Bitcoin. This pattern suggests that as central banks continue to implement expansionary monetary policies, injecting money into the global economy, BTC is likely to see a significant increase.
The relationship between M2 and Bitcoin underscores how cryptocurrency can serve as a hedge against inflation and a store of value in an increasingly global financial environment. As central banks continue to pursue accommodative policies, including low interest rates and money supply expansion, Bitcoin will benefit from this macroeconomic trend.
As M2 increases, the price of Bitcoin historically follows suit, driven by increased market capitalization. Given the current trajectory of central banks pushing for expansionary monetary policies, this trend points to a positive outlook for BTC in 2025. Investors and analysts alike have been watching these developments closely, with many predicting that BTC may experience another major rally as the global economy continues to recover. .
Value Action: Technical Standards
Bitcoin is currently trading at $96,500 after confirming strong demand at the $92,000 level. This price action comes after several days of selling pressure, indicating that the bulls are back in control, at least for now. A strong rebound from $92,000 has given confidence to the market, but the crucial $100,000 mark remains an important barrier.
For the meeting to take place, the bulls must regain this level of consciousness. A break above $100,000 would indicate more bullish momentum, which could drive BTC to new highs. However, there is still risk as BTC remains below this key level. If BTC fails to break and hold above $100,000 in the coming weeks, the market may face further consolidation or pullback.
Not being able to push past $100,000 can lead to a loss of momentum, which may result in a deeper follow-up. Traders and investors are closely monitoring Bitcoin’s ability to sustain its current strength. The next few weeks will be crucial in determining whether BTC can break through this resistance or whether it will face more challenges to its price action.
Featured image from Dall-E, chart from TradingView