Bitcoin enthusiasts might have reason to celebrate soon. As of July 29, 2025, the price of Bitcoin is tantalizingly close to its all-time high, just 4% shy of the $123,000 mark. According to a fresh analysis by crypto expert Doctor Profit, there’s a good chance that a new rally is on the horizon, fueled by both technical breakthroughs and macroeconomic shifts.
Bitcoin Price Poised for Growth After Major Trade Deal
In a post shared on X (previously known as Twitter), Doctor Profit pointed to a breakthrough on Bitcoin’s monthly chart—specifically, a diagonal resistance line that had been a thorn in the side of Bitcoin bulls since late 2024. This stubborn barrier finally gave way this month. The cryptocurrency not only broke through but also successfully retested the $114,000 level, creating what Doctor Profit describes as a “strong bullish impulse.” As explored in our recent coverage of Bitcoin’s potential corrective phase, analysts suggest that Bitcoin could rally to $135K before entering a corrective phase.
Adding more fire to the bullish sentiment is a newly inked trade deal between the U.S. and Europe, announced by the White House on Monday. This agreement, which encompasses $750 billion in U.S. energy exports and $600 billion in European investments, could ease the market pressure that had been dampening both Bitcoin and traditional stocks due to ongoing tariff issues. Doctor Profit sees these developments as catalysts, potentially setting the stage for Bitcoin’s next upward surge.
Links Between M2 Money Supply and BTC’s Potential
Zooming out to the macroeconomic picture, the M2 money supply emerges as a significant player in Bitcoin’s narrative. Back in 2020, a 25% surge in M2—thanks to pandemic-induced fiscal measures—coincided with an 800% rally in Bitcoin. Fast forward to 2025, and M2 has risen by 2.3% since the year began, even amid the Federal Reserve’s quantitative tightening. Doctor Profit argues that this uptick in M2 might signal a shift in the Fed’s monetary policy stance, possibly leaning towards more aggressive measures soon.
Historical patterns suggest a tantalizing correlation: every 1% increase in M2 could propel Bitcoin’s price up by 30-35%. With M2’s most substantial growth occurring between May and June 2025, at a monthly clip of 0.63%, there’s speculation that Bitcoin might rally by 15-17.5% in the coming weeks. If these projections hold true, we could see Bitcoin flirting with the $130,000 threshold. This aligns with our analysis of Bitcoin’s market cycle history, which hints at a 15% short-term push to $138K.
A Watchful Eye on the Federal Reserve
As we look ahead, all eyes are on the Federal Open Market Committee (FOMC) meeting scheduled for this Wednesday. While the market doesn’t anticipate any interest rate cuts just yet, the meeting’s outcomes could provide further clues about the Fed’s future moves. As of now, Bitcoin is trading at $117,569, marking an impressive 71% increase year-to-date.
In conclusion, while the stars seem to be aligning for Bitcoin, the market remains a dynamic and unpredictable beast. Will the anticipated rally materialize? Only time will tell, but for now, investors are watching closely—and with bated breath.
Source
This article is based on: Expect A New Bitcoin Price Rally: Analyst Connects M2 Lag To $130,000 Target
Further Reading
Deepen your understanding with these related articles:
- Bitcoin Tracking Past Cycles as Analysts Predict $200K in 2025
- Bitcoin is rallying on US deficit concerns, not hype: Analyst
- BTC price in 'crisis mode' at $123K: 5 things to know in Bitcoin this week
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
