Bitcoin Surges Over 3%, Market Cap Tops Alphabet Amid M2 Supply Growth

·

Bitcoin (BTC) has roared back to life, surging over 3% on Thursday, July 3, and briefly crossing the $109,730 mark—bringing it dangerously close to the symbolic $110,000 threshold. This rally marked a dramatic reversal from earlier market stagnation and propelled Bitcoin’s market capitalization to an all-time high of $2.179 trillion**, briefly surpassing that of **Alphabet Inc.**, Google’s parent company, valued at $2.164 trillion. With this milestone, Bitcoin reclaimed its position as the sixth most valuable asset globally** by market cap.

The surge wasn't just a flash in the pan—it was backed by macroeconomic fundamentals, growing institutional confidence, and renewed investor optimism about digital assets as a long-term store of value.

M2 Money Supply Growth Fuels Bitcoin Rally

One of the most compelling catalysts behind this rally is the resurgence in M2 money supply growth in the United States. According to the latest data released on Wednesday, July 2, the U.S. M2 money supply reached $21.94 trillion, setting a new historical high.

Matt Mena, Crypto Research Strategist at 21Shares, emphasized that rising money supply has historically correlated with upward pressure on Bitcoin prices. "When liquidity expands, assets like Bitcoin tend to benefit," Mena explained. "We're seeing renewed monetary inflation, and investors are rotating into scarce digital assets as a hedge."

This relationship stems from Bitcoin’s fixed supply cap of 21 million coins—making it inherently deflationary in contrast to fiat currencies, which can be printed endlessly. As more dollars enter circulation, the relative scarcity of Bitcoin becomes more attractive to both retail and institutional investors.

👉 Discover how global liquidity trends are shaping the next leg of the crypto bull run.

Can Bitcoin Hit $150,000 by Year-End?

With momentum building, prominent market analyst Anthony "Pomp" Pompliano has doubled down on his bullish forecast: Bitcoin could reach $150,000 by the end of 2025, provided it continues to track M2 expansion.

Pomp’s thesis rests on the idea that Bitcoin acts as a real-time barometer for monetary policy. If central banks maintain loose monetary conditions—or even resume quantitative easing—Bitcoin is likely to absorb much of that excess liquidity.

Moreover, macroeconomic indicators such as inflation expectations, weakening bond yields, and growing fiscal deficits are creating a fertile environment for alternative stores of value. Bitcoin, with its decentralized nature and increasing adoption in payment systems and treasury reserves, stands out as a top contender.

While $150,000 may seem ambitious, it’s worth noting that Bitcoin has already gained over 65% year-to-date, outperforming traditional asset classes including equities, gold, and real estate.

Institutional Adoption Accelerates

Beyond macro trends, structural shifts in financial infrastructure are also supporting Bitcoin’s rise.

Major Companies Continue Accumulating BTC

Firms like MicroStrategy (MSTR) and Coinbase (COIN) have maintained strong positions in Bitcoin, signaling long-term confidence. Although their stock movements were modest during this latest surge, they remain key players in the digital asset ecosystem.

Meanwhile, Hut 8 Mining (HUT) rose nearly 4%, and Canaan Inc. (CAN) jumped close to 9%, reflecting renewed investor interest in crypto mining and infrastructure plays.

Stablecoins Enter Mainstream Finance

In parallel developments, Ripple’s stablecoin RLUSD is gaining traction in traditional finance. AMINA Bank AG recently became the first bank globally to support RLUSD, marking a pivotal step toward mainstream integration of blockchain-based financial instruments.

This move underscores growing institutional trust in digital assets—not just speculative tokens like Bitcoin or Ethereum, but regulated stablecoins pegged to real-world value.

Ethereum and XRP Show Strength Too

While Bitcoin leads the charge, other major cryptocurrencies are also showing strength. Ethereum (ETH) has broken out of its consolidation phase and is trading firmly above key resistance levels. Ripple’s XRP is also displaying bullish momentum as global demand for fast, low-cost cross-border payments rises.

Even Cardano (ADA) showed resilience despite a 1% dip on Friday, July 4—after a broader weekly rebound added 2.34 billion ADA back into profitable supply. Analysts suggest this could indicate accumulation before a potential breakout.

Market Sentiment Turns Bullish Ahead of Weekend

During Friday’s Asian trading session, Bitcoin held steady around $109,000, supported by strong buying interest and positive macro data. Better-than-expected U.S. jobs figures boosted equity markets to record highs, which in turn lifted risk appetite across digital assets.

Unlike past cycles where strong economic data triggered fears of tighter monetary policy, this time markets interpreted the data as confirmation that the economy is stable enough to avoid emergency rate hikes—while still leaving room for future cuts if inflation cools.

As a result, traders are increasingly confident that the Federal Reserve will pivot toward rate cuts later in 2025—further enhancing Bitcoin’s appeal as an inflation-resistant asset.

👉 Explore how changing Fed policies could unlock the next wave of crypto gains.

Frequently Asked Questions (FAQ)

Why did Bitcoin surpass Alphabet in market cap?

Bitcoin briefly exceeded Alphabet's market valuation due to a combination of price appreciation and increased investor demand driven by macroeconomic factors like rising M2 supply and expectations of future monetary easing.

Is Bitcoin really affected by M2 money supply?

Yes. Historically, increases in broad money supply correlate with higher Bitcoin prices. As more fiat currency enters circulation, investors often turn to scarce assets like Bitcoin to preserve purchasing power.

What does it mean for Bitcoin to be among the top 6 global assets?

It signifies growing recognition of Bitcoin as a legitimate financial asset class—on par with major corporations and commodities—in terms of market value and global economic impact.

Could Bitcoin really hit $150,000?

While not guaranteed, a confluence of factors—including sustained M2 growth, ETF inflows, halving-driven scarcity, and Fed rate cuts—could make $150,000 achievable by year-end 2025.

Are other cryptocurrencies following Bitcoin’s lead?

Yes. Ethereum, XRP, and select altcoins have shown strong momentum recently. However, Bitcoin remains the primary driver of market sentiment due to its dominance and liquidity.

Should I invest in Bitcoin now?

Investing in Bitcoin carries risks due to volatility and regulatory uncertainty. Always conduct thorough research and consult with a qualified financial advisor before making investment decisions.

The Road Ahead: Scarcity Meets Liquidity

As we move deeper into 2025, the narrative around Bitcoin continues to evolve—from speculative novelty to macro hedge and institutional-grade asset.

With M2 money supply expanding at a steady pace, central banks facing inflationary pressures, and global demand for digital settlement solutions rising, Bitcoin is well-positioned to capture value across multiple fronts:

The convergence of these forces suggests that the current rally may be just the beginning.

👉 Stay ahead of the curve—see how early movers are positioning for the next crypto surge.

Core Keywords:

Disclaimer: This article reflects general market observations and analysis. It does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always seek independent professional guidance before making investment decisions.