Bitcoin Could Reach $120K With Three Catalysts

Takeaways from the conference:

• Bitcoin is benefiting from the record global growth in 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 Sector remains the greatest risk.

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

Some analysts believe that Bitcoin valuation will exceed gold’s value of $23 trillion, but others claim it will be much more difficult to decouple from the tech stock market as Bitcoin adoption is in its very early stages.

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

Bitcoin trading like Nvidia Strategy, Metaplanet and Metaplanet

Nvidia’s market capitalization jumped to $4.4 billion from $2.3 in March, although its last quarterly net profit was unchanged compared to a year earlier.

The traders may have bet on higher earnings in the future, or they may no longer be interested in valuation metrics as government spending is expected to rise. accelerate monetary expansion The fiscal burden is increasing.

In July, the M2 money supply of the 21 biggest central banks in the world reached an all-time high $55.5 trillion. Meanwhile, the federal budget deficit in the United States totalled $1.3 trillion within just nine months.

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

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 and (MSTR), two of the most popular cryptocurrency exchanges, are making headlines.

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, something which 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 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.

Currently US Bitcoin spot exchange-traded fund assets are worth $150 billion, as opposed to $198 for gold in July 2025. 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, even if the timing for this remains unclear.

This is not a legal or investment advisory article. It is only intended as a general guide. This article is solely for informational purposes. It does not represent or reflect Cointelegraph’s views.