Bitcoin Could Reach $120K With Three Catalysts

Takeaways from the conference:

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

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

• Retail inflows are limited, but could spark a rally if interest from the mainstream returns.

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

Sustainability of economic growth and global uncertainty artificial intelligence Sector remains the greatest risk.

Even so, there are three key drivers that could propel Bitcoin to a market cap of $2.3 trillion or more.

Some analysts believe that Bitcoin’s valuation will exceed gold, which is valued at $23 trillion. However, others claim it will be much more difficult to fully decouple Bitcoin from the tech stock market as its use remains very early.

Nvidia may signal a change in paradigm even if investors’ perceptions do not change.

Bitcoin Trades Like Nvidia Strategy Metaplanet

Nvidia’s market capitalization jumped to $4.4 billion from $2.3 in March despite the fact that its last quarterly net profit was unchanged compared to a year 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 Due to the mounting fiscal debt

The global M2 money supply among the 21 largest banks has reached $55,5 trillion, a new record. However, in only nine months the US federal budget deficit grew to $1.3 trillion.

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

Inflows of retail money are not as high. are still largely absent Bitcoin is still expected to grow despite its 116% growth over the last 12 months.

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. This was achieved last in November 2024.

Even though the trigger for renewed retail interests is unknown, there remains significant room for a retail rally to occur in 2025. This is especially so as both traditional finance and US government 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 alternative investments can be added to 401(k), retirement savings accounts.

Michael Heinrich said that a change in the 401 (k) rules could have a significant impact on the industry. “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.

As of July 2025 the assets held by US exchange-traded Bitcoin funds are $150 billion, while gold instrument assets will be $198 billion. 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 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.