Bitcoin’s potential for a dramatic price surge has captivated the market once again, as analysts project a climb to $189,000 if the digital currency captures modest portions of major monetary pools. CoinShares, a digital asset firm, suggests that even a small slice of global liquidity and gold’s market cap could propel Bitcoin to these lofty heights. The current price of Bitcoin, hovering above $113,500, would need to leap by more than 65% to reach this ambitious target.
Chasing Big Pools with Tiny Bites
The crux of CoinShares’ forecast lies in leveraging a Total Addressable Market (TAM) model—a method often used in startup circles. By examining the vast expanses of cash, deposits, and gold, the model posits what share a new player like Bitcoin might feasibly snag. According to CoinShares, if Bitcoin were to capture 2% of global M2 liquidity and 5% of the gold market, it would catapult the price to $189,000. This aligns with recent analyses suggesting Bitcoin may peak by September as global M2 dynamics shift.
It’s a simple equation with profound implications. “The beauty of this model is its clarity,” notes Greg Taylor, a seasoned analyst in the crypto sphere. “You don’t need Bitcoin to replace everything. Winning just a fraction of these massive pools can be incredibly lucrative.”
However, the path to such gains is littered with obstacles. Regulation remains a looming specter, potentially hampering Bitcoin’s adoption. Meanwhile, the emergence of new digital assets with unique features could divert investor interest, while fluctuations in interest rates and gold’s market value could further complicate matters.
The TAM Model: A Double-Edged Sword?
Not all experts are convinced that the TAM model paints a complete picture. “It’s a neat snapshot, sure,” says financial strategist Laura Chen, “but real-world adoption is never quite that tidy.” The model assumes steady growth in user trust and institutional interest, alongside regulatory clarity—factors that are far from guaranteed.
For Bitcoin to carve out 2% of global liquidity and 5% of gold’s market cap, a delicate balance of policy support, technological advancements, and investor appetite is essential. Yet, the very nature of these variables introduces uncertainty. Shifts in governmental policies or a slowdown in crypto innovation could derail this trajectory. Analysts have also connected M2 lag to a potential Bitcoin price rally to $130,000, highlighting the complex interplay of these factors.
Despite these challenges, many in the crypto community remain bullish. The notion that Bitcoin’s price could swell without needing to dominate every financial market is appealing. “This isn’t about Bitcoin taking over the world,” remarks crypto enthusiast Michael Rivera. “It’s about understanding where it fits within the existing financial landscape.”
Looking Ahead: What Lies Beyond the Horizon?
As of today, August 4, 2025, Bitcoin’s journey toward the $189,000 mark is set against a backdrop of both promise and peril. Should the digital currency succeed in increasing its share of these colossal monetary pools, the implications for the broader cryptocurrency market—and indeed, the global financial system—could be profound.
Yet, questions linger. Will governments embrace or shun Bitcoin’s ascent? Can technological innovations keep pace with growing demand? And perhaps most crucially, will investors maintain their enthusiasm as the landscape evolves?
These questions remain unanswered. But one thing is certain: as Bitcoin continues its quest for greater market share, the eyes of the world will be watching closely. Whether the journey ends at $189,000 or somewhere else entirely, it’s bound to be an intriguing ride.
Source
This article is based on: Bitcoin Set To Hit $189K As Global Liquidity Tops $127T – Analysts
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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.
