Analysts are drawing parallels between the current surge in global M2 money supply and the liquidity-driven rally that propelled Bitcoin (BTC) from under $10,000 to over $60,000 during the COVID-19 pandemic. With M2 growth accelerating again, some experts suggest that Bitcoin could experience a similar sixfold increase, potentially reaching up to $500,000 by the end of 2026.
Cointelegraph
M2 Money Supply Surge Mirrors 2020 Patterns
Global M2 money supply has recently expanded by 6.2% since March 2025, marking the most significant increase since the pandemic’s onset. This surge mirrors the 21% rise observed in 2020, which coincided with Bitcoin’s dramatic price ascent. The current M2 level stands at approximately $137 trillion, up from $129 trillion six months ago. Analyst Jesse Myers notes that Bitcoin’s price tends to follow M2 growth with a slight delay, suggesting that BTC may be poised for a significant rally.
Cointelegraph
Institutional Optimism and Market Sentiment
Institutional investors are increasingly optimistic about Bitcoin’s prospects. Asset manager Lawrence Lepard highlights the 12% annualized growth rate in global M2, emphasizing that this expansion, coupled with potential interest rate cuts, could drive Bitcoin’s price upward. He suggests that the current environment is conducive to a “Bitcoin launch,” with the asset poised to benefit from the ongoing liquidity influx.
Cointelegraph
Additionally, macro analyst Raoul Pal forecasts that the Bitcoin bull market could extend into 2026, with prices potentially reaching between $250,000 and $350,000. He attributes this outlook to factors such as the ISM Manufacturing Index, a weakening U.S. dollar, and expanding M2 money supply, all of which support Bitcoin’s role as a hedge against inflation and currency devaluation.
The Coin Republic
Forecasts and Divergent Views
Bitcoin’s price predictions for 2026 vary among analysts. Some forecasts suggest a range from $60,000 to $500,000, with a median estimate around $201,000. Standard Chartered projects $300,000 by the end of 2026, citing factors like ETF inflows and supportive legislation. Conversely, some analysts remain cautious, noting that while M2 growth is a significant indicator, other variables such as regulatory developments and market sentiment also play crucial roles in determining Bitcoin’s price trajectory.
CryptoSlate
Conclusion
The resurgence in global M2 money supply has rekindled comparisons to the liquidity-driven rally of 2020, leading some analysts to predict a substantial increase in Bitcoin’s price by 2026. While forecasts vary, the consensus points to a favorable macroeconomic environment for Bitcoin, characterized by increased liquidity and institutional interest. However, investors should remain mindful of potential risks, including regulatory changes and market volatility, which could impact Bitcoin’s performance in the coming years.
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