Bitcoin is poised to reach $170,000 as the global M2 money supply reaches a new record high of $55.48 trillion on July 2. Historically, Bitcoin's price reacts to M2 supply changes with a 3–6 month lag, with some previous uptrends occurring just weeks after liquidity spikes. The rising M2 indicates increasing capital flow into assets like cryptocurrencies. In contrast, the declining US dollar, evidenced by a 10.8% drop in the US Dollar Index (DXY) during the first half of 2025, enhances Bitcoin's potential appeal to investors. Bitcoin increased by 13.25% during this same period, highlighting a negative correlation with the dollar. Experts suggest that ongoing dollar weakness could signal the beginning of a fresh Bitcoin uptrend, further supported by historical patterns of M2-driven price movements. Analysts predict a significant rally in Bitcoin by the end of 2025, fueled by these economic indicators.

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