The post Bitcoin rides another trend in M2 money supply expansion appeared on BitcoinEthereumNews.com.

Bitcoin solidified its growth trend in October, climbing above $73,500 for a brief period. The latest rally coincides with a new period of M2 money supply growth, one of the key factors behind the rise of BTC markets.  BTC is still within a small distance of its all-time high. The recent rally still adheres to the trend of rising M2 money supply.  The BTC market price is a lagging indicator of quantitative easing. In the short term, BTC has rallied even during liquidity crunches, but its overall arc coincides with M2 money supply shifts. The M2 indicator took months to recover since a small April crunch, coinciding with Bitcoin’s slow gain to over $70K.  Bitcoin grows during periods of M2 inflows and continues to rally even after the liquidity peak. | Source: BGeometrics The global M2 supply peaked around September 20 and slid slightly in the last month or so. The price of BTC performed in its usually lagging format, after moving within a relatively small range. Now, the hopes of a bigger BTC rally or a 2025 bull market hinge on decisions about the M2 money supply.  The past decade has seen almost constant M2 expansion for the major central banks, though with occasional backtracks and minor supply crunches. The most influential metric takes into account the world’s largest central banks – The US Fed, the ECB, the Bank of Japan, and the People’s Bank of China.  Will M2 continue to grow? The M2 landscape may vary regionally, shifting demand for investments. In 2025, the US money supply is expected to grow more conservatively, with some backtracking expected during the year. The Euro Area expects cautious growth, with the exclusion of the German economy. The M2 money supply predictions are based on hundreds of economic indicators, reflecting the state…

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Filed under: News - @ October 30, 2024 1:23 pm