Right now, it might seem like a long shot, considering Bitcoin is hovering around $80,000. But Marcel Pechman is convinced that BTC is heading straight for $105,000.
How? By riding the wave of increasing global liquidity.
Global Liquidity Is on the Rise
In simple terms, global liquidity refers to the total amount of capital available worldwide for investments. When liquidity increases, it’s typically a bullish signal for risk assets—and according to several analysts, this trend has been in motion for some time.
However, Bitcoin doesn’t react instantly. It usually lags a few months behind rising liquidity levels, meaning we might not see the full effect right away.
Pechman cites an analysis by Chicken Genius, which used Claude 3.7 AI modeling to detect an 82.4% correlation between Bitcoin and global M2 money supply.
Translation? More money in the system = higher Bitcoin prices.
This M2 money supply has been steadily increasing, leading Pechman to believe that Bitcoin will follow suit. He also highlights that central banks are shifting to looser monetary policies and cutting interest rates, which historically boosts BTC prices.
Bitfinex Whales Bought Bitcoin When M2 Hit Bottom
In September 2024, traders on Bitfinex made a bold move, buying 7,840 BTC in long positions at $50,000 per coin.
Despite market dips, they held firm—and two months later, BTC skyrocketed to $75,000.
However, it’s important to note that M2 and Bitcoin aren’t perfectly correlated. A drop in M2 doesn’t always spell disaster, and an increase doesn’t guarantee a price surge.
For instance, when Donald Trump won the U.S. election in November 2024, Bitcoin hit a new all-time high—despite a temporary decline in M2 impacting the broader financial system.
Will Bitcoin Really Hit $105,000?
Pechman remains highly optimistic that Bitcoin is on track for six-figure territory in the near future.
So, are we heading for $105K soon? Or will the market throw a curveball?
