Bitcoin surged to $92,000, a nearly 5% increase in 24 hours, fueled by anticipation surrounding Donald Trump's upcoming crypto summit at the White House. The price rallied from a low of $87,500 to a high of $92,760, currently stabilizing around $91,500. This upward trend has positively impacted altcoins, with Solana (SOL), XRP, and Dogecoin (DOGE) also showing signs of recovery.

M2 Money Supply and Bitcoin's Growth

Analysts are closely monitoring the global M2 money supply, a key indicator of financial liquidity encompassing cash, deposits, and near-money assets. Historically, Bitcoin's price has correlated with M2 expansion; increased liquidity often boosts demand for alternative assets like cryptocurrencies. The sharp rise in global M2 since late 2024 has led experts to forecast a significant Bitcoin rally between late March and mid-May 2025.

Crypto analyst Colin Talks Crypto highlighted the dramatic increase in global M2, describing it as a "vertical line" on charts—a strong indicator of potential asset price surges. He anticipates a rally encompassing Bitcoin, stocks, and the broader crypto market, commencing on March 25th and lasting until May 14th.

The COVID-19 pandemic serves as a relevant example. The rapid expansion of the M2 money supply then coincided with one of Bitcoin's most significant bull markets. The influx of money into the economy, coupled with concerns about inflation, drove increased Bitcoin investment as a hedge against devaluation. Conversely, periods of slower money supply growth often correlate with weaker Bitcoin performance due to reduced capital available for riskier investments.

Expert Opinions

Vandell, co-founder of Black Swan Capitalist, emphasizes the direct impact of global M2 movements on Bitcoin, noting that a decline in M2 typically precedes a similar trend in Bitcoin and the broader crypto market by approximately ten weeks. Despite potential short-term corrections, he remains optimistic about long-term growth.

Prominent crypto analyst Michaël van de Poppe also views M2 expansion as crucial for early market recovery. He points to favorable conditions for Bitcoin and altcoins, citing slowing inflation, anticipated U.S. Federal Reserve rate cuts, and a weakening dollar.

Historical Patterns and 2025 Projections

Economist Tomas draws parallels between the current market and previous cycles in 2017 and 2020, where significant M2 increases coincided with Bitcoin's strongest years. He suggests 2025 could follow a similar pattern, contingent on the extent of the U.S. dollar's weakening.

Macro researcher Yimin Xu predicts that the Federal Reserve might cease its Quantitative Tightening (QT) policy later this year, potentially shifting to Quantitative Easing (QE) depending on economic circumstances. This would inject further liquidity into markets, bolstering Bitcoin's bullish momentum.

Bitcoin's Future Outlook

The confluence of expanding liquidity, evolving Federal Reserve policies, and potential political shifts in the U.S. suggests to analysts that Bitcoin is poised for another significant rally. March could mark the beginning of a bullish phase, making it a pivotal period for cryptocurrency investors.