Bitcoin is maintaining a price close to $120,000, raising curiosity about whether it can establish new highs this year.
The main factors supporting the growth potential of Bitcoin, among which the new policy of the United States could provide the biggest boost to this cryptocurrency.
MAIN CONTENT
A significant increase in global money supply boosts capital inflows into Bitcoin and hard assets.
Bitcoin ETFs are gradually approaching the value of gold ETFs, opening up opportunities to attract large institutions.
The new U.S. policy allowing cryptocurrency investment in 401(k) retirement funds could unleash a massive capital flow.
Could the increase in money supply push Bitcoin's price higher?
Global liquidity is at record levels with M2 money supply of 21 major central banks reaching $55.5 trillion in July. The U.S. recorded a budget deficit of $1.3 trillion in the first 9 months of the year.
This often leads investors to seek hard assets like Bitcoin to protect capital. For example, shares of some leading companies like Nvidia also experienced strong growth from $2.3 trillion to $4.4 trillion despite no surge in profits, indicating that liquidity is currently more important than traditional valuations.
How are Bitcoin ETFs approaching the value of gold funds?
Currently, U.S. spot Bitcoin ETFs manage about $150 billion in assets, compared to $198 billion for gold ETFs.
If Bitcoin ETFs surpass gold, this will be an important milestone affirming that Bitcoin is no longer merely a risky asset but has become a serious reserve option for large investors and institutions.
This change could encourage national investment funds, public companies, and governments to consider adding Bitcoin to their asset portfolios.
"If implemented correctly, this policy could unlock trillions of dollars in pension capital for Bitcoin and other legitimate assets."
Michael Heinrich, CEO of 0G Labs, 2025
Why have individual investors not participated much in this price surge?
Although Bitcoin rose 116% in the past year, cryptocurrency trading apps like Coinbase and Robinhood have not recorded a surge in downloads like last November.
This shows that the large inflow from the retail investor group has not yet exploded, creating room for the next price increase if this group returns to the market in 2025.
How does the new U.S. policy create a turning point with $12 trillion in pension capital?
The U.S. government has issued an executive order allowing cryptocurrency and other alternative assets to be included in 401(k) retirement funds.
The total value of retirement funds in the U.S. is currently about $12 trillion, and if applied to IRA, 403(b), and 457(b) plans, the capital scale could exceed $30 trillion. This capital flow could double the current cryptocurrency market.
"This is a breakthrough milestone that could drive the cryptocurrency ecosystem to develop more robustly in the next decade."
Matt Hougan, CIO of Bitwise, 2025
What will the next developments of Bitcoin look like?
Despite the challenges, the overall picture for 2025 is quite favorable with record money supply, Bitcoin ETFs approaching gold, individual investors not participating much, and huge pension funds beginning to flow into the cryptocurrency market.
These conditions could put Bitcoin into a strong bullish cycle, creating favorable momentum for both investors and financial institutions.
Frequently Asked Questions
1. Why does an increase in money supply affect Bitcoin's price?
Abundant liquidity often drives capital inflows into hard assets like Bitcoin, helping prices rise as investors seek safe havens.
2. How do Bitcoin ETFs influence the acceptance of large institutions?
Bitcoin ETFs nearing the value of gold ETFs show increasing trust from institutional investors, driving large capital inflows into the market.
3. What impact does the policy allowing cryptocurrency in 401(k) retirement funds have?
This policy opens up the opportunity for a trillion-dollar capital flow into cryptocurrency, helping the market develop more sustainably.
4. Why have individual investors not participated much in the current price surge?
The lack of a strong increase in downloads of trading applications indicates that retail investors have not yet poured money in massively, creating room for the next price increase.
5. Can Bitcoin reach new heights in 2025?
The current economic factors and positive policies create the premise for Bitcoin to establish new heights in 2025.
Source: https://tintucbitcoin.com/bitcoin-co-the-len-122-000-usd-2025/
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