Bitcoin could surge by approximately 40% amid projections showing US national debt approaching $40 trillion by 2025, with historical fiscal policies indicating potential bullish momentum for BTC/USD. Analysts cite the rapid near-doubling of debt from $23.2 trillion in early 2020 as a catalyst driving investors toward Bitcoin as an inflation hedge against currency debasement.
Bullish sentiment is reinforced by current global liquidity conditions, particularly the M2 money supply surpassing its all-time high above $55.4 trillion. This expansion in monetary supply historically correlates with upward price movements in Bitcoin, potentially accelerating its trajectory.
Market behavior echoes patterns observed during the 2020 COVID-19 stimulus period, when Bitcoin gained 38% following relief legislation. Increased inflows into Bitcoin exchange-traded funds and broader crypto assets highlight anticipation of similar momentum from upcoming fiscal initiatives.
As expansive monetary policies unfold, Bitcoin’s 2025 performance is positioned as a key indicator measuring cryptocurrency’s responsiveness to macro-fiscal conditions, with analysts suggesting potential targets exceeding $150,000.