Bitcoin is set to reach new all-time highs this summer due to key bullish factors

From Yahoo Finance: 2025-06-21 11:13:00

Bitcoin is experiencing a strong bull run, with its previous all-time highs likely to be surpassed soon. Four key factors are driving its price higher, including liquidity injections, a weakening dollar, falling interest rates, and its supply dynamics.

The global M2 money supply reached $108.4 trillion in April, similar to levels before Bitcoin’s 2021 breakout. Liquidity injections tend to flow towards riskier assets like Bitcoin, potentially leading to another surge in its value.

A weakening dollar is prompting investors to seek stronger assets like Bitcoin, as the dollar index has dropped about 10% this year. Fund managers are underweight the currency, boosting demand for alternative stores of value like Bitcoin.

Interest rates significantly influence Bitcoin’s price, with notable surges occurring after yield drops. Benchmark 10-year Treasury yields have fallen, leading investors to view Bitcoin as a portfolio diversifier in low-yield environments.

Bitcoin’s supply dynamics are favorable for another run at all-time highs, as the 2024 halving reduces daily issuance. Institutional demand from ETFs is outpacing new supply, with long-term holders gaining pricing power as issuance decreases.

Investors should consider buying Bitcoin for the long term, as it has room to grow significantly this summer and beyond, based on key market factors driving its value higher.



Read more at Yahoo Finance: 4 Undeniable Factors That Could Push Bitcoin to New All-Time Highs This Summer