Bitcoin Mirrors M2 Growth: Analyst Wise Advice

Wise Advice links Bitcoin's price movement to U.S. M2 money supply with a 10–12 week lag. Based on rising M2 levels, Bitcoin could surge 24% to hit $135K

Crypto analyst, Wise Advice, has linked the movement of Bitcoin to that of the US M2 money supply, noting a 10-12 week lag in Bitcoin’s price action.

M2, which includes physical currency, checking deposits, saving accounts, and money market funds, signals the amount of liquidity in the financial system. When M2 increases, it indicates that more liquidity is available to flow into risk assets, such as Bitcoin.

Recently, the M2 money supply saw a 2.7% rise, shifting from $107.5 trillion to $110.72 trillion. Meanwhile, the cryptocurrency market observed a surge in liquidity as cryptocurrencies began the year on a high note, recovering from the bear market of 2022.

This pattern has been evident since 2023, as shared by Wise Advice:

These instances demonstrate that Bitcoin’s price generally follows the M2 movement with a 10-12 week lag.

Currently, the price of Bitcoin is at $109K. If this pattern repeats, then we can expect to see at least a 24% growth in Bitcoin’s price, potentially taking it to $135K by July. This surge in Bitcoin’s price could also trigger a rally in altcoins.