Abra CEO Bill Barhydt has ignited fresh speculation in the crypto market by predicting Bitcoin could reach $130,000 by September, based on compelling correlations between global M2 money supply and BTC price action. This forecast comes as Bitcoin tests critical support levels around $103,000, with macro liquidity trends suggesting significant upside potential.
Global Liquidity and Bitcoin’s Price Trajectory
Barhydt’s analysis, which builds on research from macro investors Raoul Pal and Julien Bittel, suggests Bitcoin could experience a short-term dip to $100,000 before launching toward new all-time highs. The correlation between global M2 money supply and Bitcoin’s price has become increasingly significant, with Pal estimating that liquidity accounts for up to 90% of Bitcoin’s price movements.
Key Market Indicators and Risk Factors
Current market data shows global M2 reaching a record $111 trillion, creating substantial tailwinds for Bitcoin’s price appreciation. However, Barhydt warns traders to exercise caution with leverage, noting the possibility of a pullback to $95,000 before any sustained rally materializes.
Institutional Perspective and Market Adoption
Despite concerns about market overcrowding, Barhydt emphasizes that institutional adoption remains in early stages, with “billions of people and trillions of dollars” yet to enter the crypto market. This aligns with recent trends showing increased institutional Bitcoin acquisition.
FAQ Section
What is the relationship between M2 and Bitcoin price?
M2 money supply growth typically leads to increased Bitcoin prices as investors seek inflation hedges and alternative stores of value.
When could Bitcoin reach $130,000?
According to Barhydt’s analysis, Bitcoin could achieve this price target by August/September 2025, following a potential short-term correction.
What are the main risks to this prediction?
Key risks include changes in central bank policies, leverage-induced volatility, and potential regulatory developments.
At press time, Bitcoin trades at $104,625, maintaining strong support above the $100,000 psychological level as markets digest these macro-driven predictions.
