Bitcoin has decoupled from M2 global liquidity since July 2025, primarily due to increased U.S. government borrowing, which has reduced net dollar liquidity and pressured Bitcoin prices below $126,000. Analysts, including Jesse Eckel, view this as a temporary phase, suggesting Bitcoin could recouple with M2 liquidity, potentially leading to price increases into 2026. The October 2025 deleveraging event, which resulted in the liquidation of approximately $20 billion in positions, is seen as a necessary market reset rather than a cycle peak. Options data suggests Bitcoin's price could range between $90,000 and $160,000 over the next three to six months, with expectations of year-over-year liquidity growth in 2026.