Bitcoin Price Poised to Explode as M2 Money Supply Soars
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Global M2 money supply has reached a record $108.4 trillion, signaling more liquidity in the financial system. Past M2 surges have preceded major Bitcoin rallies, and analysts expect a similar pattern to play out. The global M2 money supply has recently reached an astonishing $108.4 trillion, and this means that the price of Bitcoin has the potential to rise to new heights. The selloff recently saw Bitcoin facing another two weeks of volatility and macro pressure, and now, as central banks pour more liquidity, analysts are closely watching Bitcoin’s response. Source: BGeometrics M2 consists of currency, demand, savings, and other deposits. The expansion of M2 in the past has been associated with movements in risk-on assets. Bitcoin, especially since it is a scarce digital asset with a limited number of tokens, tends to thrive in such conditions of unprecedented monetary expansion. M2 increased by more than 25% from the COVID-19 stimulus measures compared to this year’s digital asset surge from below $10,000 to over $69,000. Recent moves echo that trend. M2 has been on an upward trend since late February, which can indicate a delayed but powerful impulse to increase the Bitcoin rate. Analysts based on M2 estimated that Bitcoin’s price usually lags behind by about two months of growth. If this pattern persists, there is the possibility of a breakout if liquidity remains high. Bitcoin Shrugs Off Panic as Wall Street Slides Unlike other markets, Bitcoin revealed its stability during this period. On April 4, under pressure from Trump’s new “Liberation Day” tariffs and China’s 34% responsive measures, U.S. stocks were down $3.25 trillion in two days. Yet, Bitcoin increased to $84,639, what several analysts refer to as a persistent and rather distinct “decoupling.” Federal Reserve Chair Jerome Powell said the tariffs could harm the economy by raising inflation…
Filed under: News - @ April 5, 2025 10:27 am