Bitcoin could exceed $110,000 by the end of January 2025, according to the correlation between the price of the flagship asset and the Global Macro Investor (GMI) total liquidity index, which reflects a combined view of the balance sheets of all major central banks.
However, the $110,000 price is just a “local maximum” for Bitcoin’s current cycle, wrote Raoul Pal, founder and CEO of Global Macro Investor.
Global Macro Investor Total Liquidity Index and Bitcoin price Chart
Assuming that Bitcoin's price follows the liquidity index, the flagship asset's value will first peak at around $110,000 in January 2025 and then fall below $70,000 by February 2025.
The potential move below $70,000 will be temporary due to what Raoul Pal called an "interim liquidity peak." Bitcoin will continue to grow in the third quarter of 2025.
According to Bitget Wallet COO Alvin Kan, the growing money supply is a historical catalyst for the rise in the price of Bitcoin.
Increased liquidity from the US Federal Reserve typically improves market conditions for risky assets such as Bitcoin Historically, such liquidity injections have led to increased investor interest and capital flow into cryptocurrencies, he said.
According to historical data, in 2025 Bitcoin could absorb up to 10% of newly printed money. This could attract $2 trillion in new investment into BTC.
