The post Analyzing the Correlation Between Global Liquidity and Bitcoin’s Price appeared on BitcoinEthereumNews.com.

TLDR Bitcoin price dropped nearly 5% from $65,000-$66,000 resistance zone in October Analyst predicts Bitcoin could reach $90,000 in 2 months if it follows global M2 money supply trend Global liquidity is rising, partly due to weakening USD China’s monetary policy changes are driving global M2 money supply expansion Federal Reserve hints at further rate cuts in Q4 2024 Bitcoin, the world’s leading cryptocurrency, has experienced a slight downturn at the start of October, dropping nearly 5% from the $65,000 to $66,000 resistance zone. Despite this short-term setback, some analysts remain optimistic about Bitcoin’s future price trajectory, citing global liquidity trends as a potential catalyst for growth. One analyst on social media platform X (formerly Twitter) has drawn attention to the correlation between Bitcoin’s price and the global M2 money supply. M2 is a measure of the money supply that includes cash, checking deposits, and easily convertible near money. According to this analyst, if Bitcoin continues to track the global M2 money supply trend, it could potentially reach $90,000 within the next two months. The theory behind this prediction is based on historical data showing a direct correlation between increases in global money supply and Bitcoin price movements. If bitcoin continues following the trajectory of global M2 money supply, it’s heading to $90,000 before the end of the year. pic.twitter.com/Kd3YlDT12H — Joe Consorti ⚡️ (@JoeConsorti) September 30, 2024 As global liquidity rises, Bitcoin has often seen corresponding price increases. Currently, global liquidity is on an upward trend, which could bode well for Bitcoin’s price if this correlation holds true. In the short term, Bitcoin faces resistance at the September 2024 highs of around $65,000 to $66,000. If bullish sentiment returns and prices rise, Bitcoin might break through this resistance. Further resistance lies between $70,000 and $72,000. A breakout above these…

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Filed under: News - @ October 2, 2024 8:26 am