The post Expanding M2 Money Supply Signals Potential Extended Bitcoin Bull Market appeared on BitcoinEthereumNews.com.

Historical Bitcoin market cycles have been closely tied to M2 money supply and expanding liquidity. On Oct. 22, market analyst Michaël van de Poppe delved into data points and correlations with cycle peaks and money supply. He noted that in 2017, the M2 supply continued to expand significantly, and the cycle lasted until the end of the year, with BTC peaking at $20,000. During the 2021 bull market, the M2 supply surged, and crypto markets followed, peaking in November that year. However, the money supply continued to expand into 2022 but markets were kept depressed that year due to interest rate hikes and the collapses of several high-profile crypto companies. Money Supply Impacts The analyst predicted that this cycle would be prolonged if the M2 money supply kept expanding for another year and a half. “As a general thesis, if the M2 supply is expanded until mid-2026, the liquidity expansions will likely prolong the cycle.” This chart shows a few super important data points that I think are important for this cycle. – In 2016-2017 the M2 supply continued to expand significantly, through which the cycle lasted until the end of 2017. – In 2021 the M2 supply basically went vertical, after which it… pic.twitter.com/z1QuikfbVG — Michaël van de Poppe (@CryptoMichNL) October 22, 2024 The M2 money supply is a measure of the amount of currency in circulation. It includes M1 money, which is physical cash and deposits, in addition to currency that is “less liquid.” It is currently growing at a rate of 2.59%, which has just surpassed the US inflation rate of 2.44%. Moreover, it has been increasing since the beginning of this year and is currently $21.2 trillion, according to the St. Louis Fed. Market Strategist Charlie Bilello commented on the growth rate, stating, “After a brief hiatus, money…

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Filed under: News - @ October 23, 2024 8:20 am