Bitcoin’s Bullish Momentum: Key Insights and Potential Breakthroughs
As the cryptocurrency market continues to display its trademark volatility, Bitcoin (BTC) finds itself on an optimistic trajectory. A seasoned crypto analyst has identified pivotal developments that could propel BTC beyond the $130,000 mark. With influences ranging from macroeconomic trends to significant technical milestones and unexpected geopolitical shifts, there are four essential factors to monitor this week that could dramatically influence Bitcoin’s price movement.
Impact of the Trump-EU Trade Agreement on Bitcoin
On July 27, renowned crypto analyst Doctor Profit shared a comprehensive macroeconomic analysis on X social media, shedding light on Bitcoin’s current trajectory and the optimistic events surrounding it. The analyst began by noting a significant technical achievement by Bitcoin that, surprisingly, flew under the radar for many market participants.
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After enduring four consecutive months of rejection from November 2024 to February 2025, BTC finally managed to surpass a long-term diagonal resistance linked to its 2021 peak. This was followed by a retest of the level as support, culminating in a robust bullish advance.
On the macroeconomic stage, Doctor Profit suggested that a transformative change in global trade dynamics could bolster Bitcoin’s upward momentum. He emphasized President Donald Trump’s announcement of a historic trade deal between the US and the European Union, which alleviated concerns of a looming tariff conflict.
The analyst described this agreement as one of the most promising trade pacts since 2016, predicting a positive market response due to reduced geopolitical tensions. As stocks are poised for an uptick and economic friction diminishes between two major global economies, Bitcoin is expected to gain from this enhanced macroeconomic environment.
Balancing Whale Activity and ETF Influence
Earlier this week, Bitcoin experienced a brief dip to $114,500 following wallet movements from Galaxy Digital that raised fears of a potential sell-off. However, Doctor Profit noted that these apprehensions quickly dissipated as spot ETF inflows continued to surpass Bitcoin’s daily issuance. Institutions such as BlackRock are steadily absorbing the available supply, underscoring robust underlying demand.
Crucially, the analyst pointed out that many long-term whale wallets remain inactive, suggesting that the broader accumulation trend is still ongoing. Instead of indicating weakness, Doctor Profit argues that the recent price drop was likely a temporary shakeout, highlighting the strength of the prevailing bull market.
Growth in M2 Money Supply and Its Implications
In his report, Doctor Profit highlighted that Bitcoin’s true macroeconomic driver is the growth in M2 Money Supply. Despite prevailing narratives around quantitative tightening, the analyst noted that M2 has increased by 2.3% in 2025 so far, including a notable 0.63% rise between May and June—the largest monthly surge this year.
Historically, Bitcoin has closely mirrored M2 expansion, as evidenced during the 2020 liquidity surge that led to an 800% rally. While specific outcomes may vary, Doctor Profit suggests that the current growth rate indicates a potential 15-17.5% rally for BTC, potentially surpassing $130,000 in the coming weeks, based on the cryptocurrency’s typical 60-90 day delay in responding to monetary expansion.
Anticipating the FOMC Meeting and Potential Rate Adjustments
As a final positive point, Doctor Profit mentioned the upcoming FOMC meeting scheduled for Wednesday. Although the official stance remains “hawkish,” with only a 5% probability of a rate cut, the analyst observed that the Federal Reserve (FED) has been discreetly increasing liquidity and printing money. This growing discrepancy between Chair Jerome Powell’s rhetoric and the FED’s actual monetary actions is noteworthy.
This scenario suggests that the FED may already be preparing for the next phase of quantitative easing. Given Bitcoin’s historical sensitivity to shifts in monetary policy, the cryptocurrency could be well-positioned for a substantial rally once this pivot becomes more evident.
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