Will Bitcoin Break Out? 5 Things to Watch as M2 Money Supply Soars & Trade War Fears Mount
The post Will Bitcoin Break Out? 5 Things to Watch as M2 Money Supply Soars & Trade War Fears Mount appeared on BitcoinEthereumNews.com.
Today, Bitcoin trades at approximately $84,771, showing resilience in the face of rising U.S. trade tensions and accelerating global M2 money supply. In spite of these macroeconomic headwinds, a few important factors can shape Bitcoin’s path over the next few months. As the third week of April 2025 unfolds, Bitcoin (BTC) is at the crossroads of mounting trade tensions and record levels of global liquidity. Against this backdrop, Bitcoin hit a record all-time high of $109,114.88 earlier this year, driven by increasing institutional demand and renewed hopes for pro-crypto policies from President Donald Trump’s administration. But the party didn’t last long. Bitcoin has been seriously volatile since January. It dipped below $90,000 in February amid rising trade tensions, and on March 11, it dipped below $80,000 for the first time in months. Despite these corrections, BTC has of late established some degree of stability at about the $84,000 mark. Let us examine some of the drivers of Bitcoin’s path over the next few weeks. Trade War Turmoil In March, the United States upped its trade war against China by levying a 20% tariff on Chinese imports from 10%. China reacted at once by levying higher tariffs on U.S. agricultural products, including soybeans. It only got intense with President Trump’s “Liberation Day” tariffs of April 2 against a broad range of goods. The rising uncertainty spills over into risk assets, with Bitcoin especially struggling to move beyond long-term levels of resistance. As The Kobeissi Letter says, “We believe the tariff exemptions announced this weekend were initially meant to be temporary. The intention was to send treasury yields back down before picking up the trade war again.” This is a tactical lull and not a de-escalation, trying to corral the yields while still maintaining increased pressure on trade partners. Soaring M2 Money…
Filed under: News - @ April 14, 2025 11:22 pm