Three catalysts that could push bitcoin beyond $120K

Takeaways from the conference:

• Bitcoin benefits from a record-breaking global increase in the money supply.

• Bitcoin Spot ETFs are likely to surpass gold in the near future, which will boost BTC’s position as a reserve currency.

• 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 market capitalization jumped to $4.4 billion from $2.3 in March. This is despite the fact that its last quarterly net profit was unchanged compared to six-months earlier.

Investors could be making bets on higher earnings in the future, or they may have lost interest in valuation metrics as government spending is expected to increase. accelerate monetary expansion The fiscal burden is increasing.

The global M2 money supply among the 21 largest banks has reached $55.5 trillion, a new record. However, in nine months the US federal budget deficit reached $1.3 trillion.

These conditions are favorable for Bitcoin bulls even if BTC continues to have a relatively high correlation with technology stocks.

Retail inflows are still 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 amongst those making news.

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

At the moment, cryptocurrency apps like Coinbase and Robinhood do not show much excitement from retail investors. Both remain outside of the top-10. This was achieved last 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 The government of Canada announced on Thursday that cryptocurrency and other alternatives assets can be added to 401(k), retirement savings accounts.

Michael Heinrich said the 401 (k) rules could be changed. “unlock trillions in retirement capital for Bitcoin.”

Matt Hougan is the chief investment officer at Bitwise. He said this change may be transformational for the entire industry.

As of 2025, US Bitcoin spot exchange-traded fund assets total $150 billion. This compares to $198 for gold. according Forbes.

When spot Bitcoin ETFs exceed gold’s equivalent, this could cement the perception of Bitcoin as a currency rather than merely a commodity. 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’s path to new record highs in 2025 is firmly established, despite the uncertainty of timing.

This is not a legal or investment advisory article. It is only intended as a general guide. These are solely the opinions, views, and thoughts of the author and may not reflect the opinions and views of Cointelegraph.