Recent forecasts of Bitcoin reaching $500,000 are becoming increasingly realistic due to rising global liquidity. This article explores the impact of growing money supply on Bitcoin’s position as an asset.
Global Liquidity and Its Impact
It is projected that the money supply worldwide will double from $100 trillion to $200 trillion by 2035. With a limited supply of 21 million bitcoins, Bitcoin finds itself in a context of expanding liquidity, creating favorable conditions for price growth.
Analysts and Investor Predictions
Investor Fred Krueger notes that just $1 trillion could push Bitcoin to $1 million, which seems trivial compared to the rising money supply. This sentiment is echoed by many analysts who see potential for significant returns in Bitcoin.
Bitcoin as a Hedge Asset
Amid record fiscal stimulus and rising government debt, Bitcoin is increasingly viewed as a hedge against fiat devaluation. A report from River, focusing on Bitcoin, indicates that anyone holding BTC since July 2024 has significantly outpaced monetary debasement.
With increasing global liquidity and Bitcoin's limited supply, many investors and analysts believe that Bitcoin could reach record prices, creating unique market conditions.
