Bitcoin Price Target of $90,000 Driven by China’s M2 Money Supply Surge

Bitcoin’s price target of $90,000 appears achievable as China’s M2 money supply reaches $326 trillion, indicating increased liquidity for risk assets. Analysts predict Bitcoin could capitalise on this trend, although macroeconomic factors like Fed policy and trade tensions may pose challenges. Recent market movements show strong investor confidence, with notable shifts in Bitcoin ETF inflows and Ethereum options.

The latest US Morning Crypto News Briefing highlights an analysis predicting Bitcoin’s price may reach $90,000 due to rising liquidity from China’s M2 money supply, which hit a record $326.13 trillion. This surge suggests more capital might flow into risk assets such as Bitcoin and altcoins, historically correlated with expanded liquidity in the financial system.

Analyst Enmanuel Cardozo D’Armas anticipates that if China’s M2 continues to increase, Bitcoin could approach the $90,000 mark from its current position of $85,000. Additionally, Blockhead Research Network analyst Valentin Fournier also supports this optimism, underscoring the significance of overcoming the $90,000 resistance level as a precursor to aiming for a $100,000 milestone.

While these predictions sound promising, several factors could influence Bitcoin’s trajectory, including potential Federal Reserve rate cuts or continued trade tensions with China. Cardozo D’Armas cautions that despite the bullish sentiment surrounding M2 expansion in China, macroeconomic conditions remain critical to Bitcoin’s price movements.

Technical indicators suggest that Bitcoin may mirror the rising trend in China’s M2, which traditionally signals price surges in cryptocurrencies. Analysts, including TechDev, affirm that altcoin movements rely on definitive liquidity growth.

In additional market insights, Bitcoin ETFs reported $100 million in inflows after experiencing a significant outflow, indicating renewed investor confidence. The SEC’s approval of Ethereum ETF options is also projected to catalyse liquidity and attract institutional investment into the crypto market.

Notable market movements include over $2.2 billion in Bitcoin and Ethereum options set to expire, likely impacting volatility, and Galaxy Digital’s large ETH transfer to exchanges, raising questions about potential sell-offs. Meanwhile, a partnership initiated by Bybit with Vietnam’s Finance Minister aims to foster a national digital asset exchange.