Bitcoin is once again aligning closely with the global M2 money supply curve a metric that tracks liquid money in circulation, including cash, checking deposits, and near-cash instruments.
This increasing Bitcoin M2 correlation has caught the eye of observers who note that the first-ranked cryptocurrency has been riding the fresh burst of monetary growth in 2025.
Bitcoin M2 Correlation Reflects Liquidity Growth
Traditionally, the growth in M2 markers reflects rising liquidity on the financial sector a factor that tends to support risk-on assets such as Bitcoin.
The trend that is being experienced currently seems to follow the past bull runs in the sense that the value of Bitcoin has been skyrocketing alongside the increasing money supplies. Even the Bitcoin M2 correlation is mentioned by market analysts as a potential pointer towards the next bull run.
According to Alex Romero, a crypto market strategist, this type of macro alignment increases the bullish situation with Bitcoin. Bitcoin M2 correlation is a powerful indicator of the fact that institutional capital is agitating once again regarding the authorities’ need for more liquidity.
Ethereum Price Gains Amid On-Chain Growth
However, although Bitcoin is generating headlines due to its macro relationships, Ethereum is undergoing a silent but strong rally. The world-second largest cryptocurrency (by market cap) approaches its new all-time high (ATH), which is underpinned by on-chain activity growing, the interest in staking surging, and the Layer 2 ecosystems rapidly developing.
A blockchain analyst named Leena Chowdhury said, Ethereum’s fundamentals are firing on all cylinders. Following staking rewards, scalability through Layer 2s, and increased institutional exposure, ETH is reaching the price discovery.
Altcoin Market Gears Up for Breakout
The bullishness is spreading to the whole altcoin market. In the past, breakouts of the major resistance indicators on Ethereum have led to a surge of trades into smaller-capitalization tokens sometimes known as altcoin season.
Market watchers indicate that Q4 2025 will likely be an ideal period in this trend. Positive attitudes to the tech industry, the ongoing monetary stimulus, and the pace at which cryptocurrencies are adopting are all coming together to make this a positive environment to see a wider rally.
Update on the M2 Global Money Supply Vs. #Btc Price.
Seems like #Bitcoin is still following this chart almost perfectly. #Ethereum is slowly reaching for a new ATH. I believe #Altcoins will EXPLODE in Q4 just like I Predicted.
Everything looks perfectly on track! 👍 https://t.co/F6cwHpAPvo pic.twitter.com/oQBBDRLZ6g
— Anonymous | Crypto Predictions (@Crypto_Twittier) July 28, 2025
Bitcoin, Ethereum, Altcoin Trends Aligning Strongly
The three signals that traders are monitoring currently include the trends in Bitcoin M2 correlations, Ethereum and its nearing of ATH as well as the early stages of rotation into altcoins.
With the present trend lines remaining on the same track, the latter quarter of 2025 may present a long-awaited wave in the crypto world with replicated trends displayed in past bullish runs. Stay up to date with expert analysis and price predictions by visiting our crypto news platform.
Conclusion
Based on the latest research, Bitcoin M2 correlation continues to be a powerful indicator of market direction, reinforcing bullish expectations for the remainder of 2025. As liquidity expands and macroeconomic trends align, Bitcoin, Ethereum, and altcoins appear poised for significant gains. Traders should remain alert to these unfolding momentum signals.
Read next: M2 Money Supply Hits ATH — Can Bitcoin Ride It to $150K?
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Summary
Bitcoin is closely following the global M2 money supply curve, reinforcing its role as a macro-sensitive asset amid expanding liquidity in 2025. The Bitcoin M2 correlation is used to support future price strength expectations. In the meantime, Ethereum is approaching a new all-time high, supported by staking expansion and Layer 2 activity. Analysts predict Q4 will unleash a breakout altcoin season due to retail demand and rotation of capital. Trades are monitoring macro trends and token movements to send market signals.
FAQs
1. Why is Bitcoin rising with M2 supply?
Bitcoin tracks M2 growth, reflecting higher liquidity and risk appetite in 2025.
2. What’s driving Ethereum’s price up?
Staking, Layer 2 growth, and institutional demand are pushing ETH toward a new high.
3. Why is Q4 2025 key for altcoins?
Ethereum’s gains and strong macro trends may trigger an altcoin season in Q4.
4. What crypto trends should traders watch?
Watch Bitcoin-M2 trends, Ethereum’s ATH push, and altcoin inflows for market signals.
Glossary Of Key Terms
Bitcoin: Largest cryptocurrency used as digital gold and risk asset.
M2 Money Supply: Measure of cash and easily accessible money in the economy.
Bitcoin M2 Correlation: Link between Bitcoin’s price and changes in M2 supply.
Bull Cycle: Period of rising prices and strong investor confidence.
Ethereum (ETH): Second-largest cryptocurrency, known for smart contracts.
All-Time High (ATH): Highest price ever reached by an asset.
Staking: Locking tokens to earn rewards and support networks.
Layer 2: Solutions built on blockchains to improve speed and scalability.
Altcoins: Cryptocurrencies other than Bitcoin.
Altcoin Season: When altcoins outperform Bitcoin significantly.
Macro Conditions: Overall economic factors affecting markets.
Reference
The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.
Investing in cryptocurrencies carries risks, including the risk of significant losses. Always invest responsibly and within your means.
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