Three catalysts that could push bitcoin beyond $120K

The key takeaways

• Bitcoin benefits from the global record growth of money supply.

• Bitcoin spot ETFs may soon exceed gold, increasing BTC’s status as a reserve asset.

• Retail inflows have remained limited. However, if the interest of mainstream investors returns then a significant rally could be triggered.

BitcoinBTCLast traded on 23 July at $120,000, traders began to doubt whether an all-time record could still be reached this year.

The sustainability of global economic instability artificial intelligence The sector remains one of the most risky sectors.

Three major drivers near-to medium-term could still propel Bitcoin well beyond its $2.3 trillion current market capitalization.

Analysts predict that Bitcoin will surpass the $23 trillion gold valuation. Others argue, however, that it may take longer for Bitcoin’s decoupling to occur from technology stocks as its adoption is still in its initial stages.

Nvidia’s (NVDA), even if the investor perception doesn’t change, is laying down the foundation for a paradigm shift.

Bitcoin Trades Like Nvidia Strategy Metaplanet

Nvidia’s valuation soared from $2.3 trillion to $4.4 trillion, even though its most recent quarterly net income was flat when compared with six months ago.

The traders may have bet on higher earnings in the future, or they may no longer be interested in valuation metrics as governments will likely be expected to do more. accelerate monetary expansion Due to the mounting fiscal debt

The global M2 money supply among the 21 largest banks has reached $55,5 Trillion in July. However, in only nine months the US federal budget deficit has totaled $1.3 Trillion.

Even if BTC’s relative strong correlation to tech stocks persists, such conditions would support Bitcoin bulls.

Inflows of retail money are not as high. are still largely absent Bitcoin has seen a 116% increase in the last year. However, this is not expected to continue.

The gap compared to the S&P 500’s 22% annual return acts as a magnet for new capital, particularly as the cryptocurrency gains traction in mainstream media with companies like Strategy MetaPlanet, (MSTR), and the (MTPLF), are grabbing all of the headlines.

Related: Bitcoin company Metaplanet kicks off August with first big buy

Coinbase, Robinhood, and other crypto-apps show no sign that retail investors are excited. They remain out of the Top 10, something they last did in November 2024.

Although the catalyst of renewed interest in retail is not clear, there’s still room for retail to drive a rally by 2025. This will be especially true as the US Government and traditional finance embrace Bitcoin.

Bitcoin gets 401(k) green light

US President Donald Trump signed an executive order On Thursday, the government allowed cryptocurrency and alternative assets to be included in retirement plans.

Michael Heinrich, CEO and co-founder of 0G Labs said that the 401(k), rule change can be beneficial. “unlock trillions in retirement capital for Bitcoin.”

Matt Hougan, Bitwise’s chief investment officer, said that the changes could have a transformative effect on the industry.

Between July 2025 and now, US Bitcoin spot exchange traded funds will hold assets worth $150 billion. This compares to $198 for gold. according Forbes.

The event that spot Bitcoin ETFs will surpass the equivalent gold holdings could be a turning point in its perception to become a reserve currency instead of a financial asset. a risk-on trade.

In time, institutional investors may add Bitcoin as the currency becomes more popular as a safe-haven asset. This is especially true as Bitcoin gains in relevance for companies and government agencies. Bitcoin is on a trajectory that will lead to a new high by 2025, even though the exact timing of this rise remains unclear.

The article does not provide legal advice or investment recommendations and it is intended for informational purposes only. These are solely the opinions, views, and thoughts of the author and may not reflect the opinions and views of Cointelegraph.