Bitcoin Could See Significant Gains Following US Debt Increase, Historical Trends Suggest Possible Upside

Key Points

1. The US debt is expected to surge to $40 trillion by 2025, nearly doubling from $23.2 trillion in early 2020, which may drive investors towards Bitcoin as a hedge against inflation and currency debasement.

2. Global liquidity conditions, particularly the M2 money supply reaching a new all-time high above $55.4 trillion, are closely tied to Bitcoin's price dynamics and may fuel significant upward momentum.

3. Historical precedents, such as Bitcoin's 38% surge following the 2020 COVID-19 relief bill, suggest a potential bullish reaction to the upcoming "Big Beautiful Bill," possibly pushing BTC/USD above $150,000.

4. Market sentiment is already influenced by the anticipation of the "Big Beautiful Bill," with increased inflows into Bitcoin ETFs and other crypto assets.

5. Bitcoin's trajectory in 2025 will be closely watched as a barometer of its response to expansive fiscal and monetary policies.