Bitcoin may receive strong upward price momentum on the upcoming Friday when the US debt ceiling suspension period ends, creating an opportunity to inject new liquidity into the market and drive a price surge. After the inauguration of President Donald Trump on January 20, the US Treasury has reached the $36 trillion debt ceiling. Treasury Secretary Janet Yellen announced the "debt issuance suspension period" from January 21, expected to last until March 14.
Over the past two months, Bit has dropped 22% from over $106,000 to $82,535 as of March 12. The resumption of government spending could provide liquidity momentum to stimulate the next Bit price rally, according to Ryan Lee, chief analyst at Bitget Research. "With cash on hand, demand for financial assets like stocks and cryptocurrencies may increase, and there may be a release from the current volatility," Lee said.
The end of the debt ceiling suspension period comes just two weeks after the White House Cryptocurrency Summit, suggesting that a portion of new liquidity may flow into the cryptocurrency market, according to Aleksei Ponomarev, co-founder and CEO of the cryptocurrency index investment firm J'JO. While increased liquidity will drive price volatility, it will only have a short-term impact. Bit exchange and ETF development, along with clear and enforced regulations, will determine Bit's long-term direction.
Although Bit's price may face potential adjustments down to around $70,000 by the end of the debt ceiling suspension period, the increase in money supply could push the price above $132,000 before the end of 2025, according to estimates by Jamie Coutts, senior cryptocurrency analyst at Real Vision.
While global liquidity stimulus is a positive signal for Bit, this pioneering cryptocurrency is still constrained by concerns about global trade tariffs, according to James Wo, CEO of venture capital firm DFG. Tightening liquidity conditions make risky assets like Bit less attractive in the short to medium term.
The European Union imposed retaliatory tariffs on March 12, threatening a Bit adjustment below $75,000 in the short term, temporarily as Europe accounts for over $1.5 trillion in annual US exports.
Despite concerns about short-term price adjustments, most analysts remain optimistic about Bit's price trajectory by the end of 2025, with forecasts ranging from $160,000 to over $180,000.
