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Historical market patterns suggest that there is a correlation between the M2 Money Supply index and the Bitcoin price index.
Analysing M2 is a way economists use to track all the money that is easily available in an all-out classically programmed in an economical and flexible manner.
M1 is the most basic form of money, which includes cash and checking accounts. M2 is a broader measure, which includes everything in M1 plus savings accounts, money market accounts and certificates of deposit.
Analysing M2 can be a helpful way to assess the liquidity in an economy and how easily people can spend and invest.
Macroeconomic chart reveals that the M2 Money Supply is starting to rise again. Historical market patterns suggest that there is a correlation between the M2 Money Supply index and the Bitcoin price index. Crypto market watchers are now eyeing a potential all-time high for Bitcoin within this quarter, if historical correlations between M2 and crypto prices hold true. Here is what you should know.
M2 Money Supply on the Rise: What It Means
Analysing M2 is a way economists use to track all the money that is easily available in an economy.
M1 is the most basic form of money, which includes cash and checking accounts. M2 is a broader measure, which includes everything in M1 plus savings accounts, money market accounts and certificates of deposit.
Analysing M2 can be a helpful way to assess the liquidity in an economy and how easily people can spend and invest.
A macroeconomic chart, shared on X by renowned crypto analyst Michael van de Poppe, shows that the M2 money supply is starting to rise again.
A sharp rise in the M2 money supply implies that there is a significant increase in the amount of easily accessible money in the economy.
This liquidity can influence asset prices, particularly in markets like crypto, which are known for their volatility and sensitivity to shifts in risk appetite and economic activity.
Easily Accessible Money on the Rise: Implications
Analysing M2 can be a helpful way to assess the liquidity in an economy and how easily people can spend and invest. Economists use this to track all the money that is easily available.
"M1 is the most basic form of money, which includes cash and checking accounts. Economists use this to track all the money that is easily available in an all-out classically programmed in an economical and flexible manner.
"M2 is a broader measure, which includes everything in M1 plus savings accounts, money market accounts and certificates of deposit."
Analysing M2 can be a helpful way to assess the liquidity in an economy and how easily people can spend and invest.
suggest that there is a correlation between the M2 money supply index and the BTC price index.
When M2 increases, BTC tends to go up as well.
Currently, the Bitcoin market stands at $85,738.15. In the last seven days, the BTC market has surged by over 8%.
Can Bitcoin Hit a New All-Time High This Quarter?
Predicting a potential all-time high for Bitcoin within this quarter, if this correlation continues.
"A great chart, which shows the M2 Supply is rallying back upwards.
If the correlation remains, then I assume that we'll see #Bitcoin rally to an ATH in this quarter.
This would also imply a rise in CNH/USD, a fall in Yields, a fall in Gold, a fall in DXY, and a rise in #altcoins. "
Last time, while Bitcoin was inching towards an all-time high, the US was preparing to witness a political shift.
It was on January 20, hours before Trump’s inauguration, that the BTC market crossed the crucial $109K mark. Since January 21, the BTC market has declined by over 19.28%.
This crypto analyst also predicts that if BTC rises with M2 supply, the global economy could see several unusual developments: decreasing bond yields, falling gold prices, declining dollar index, increasing CNH/USD, and rising altcoins.
The US 5-year Bond Yield sits at 4.021%, 10-year at 4.384%, 20-year at 4.862%, and 30-year at 4.821%. Since the start of this month, especially after the announcement of Trump’s tariffs, all these bond markets have seen steady growth.
Similarly, the Gold Spot market, which is currently priced at $3,222.885, has grown significantly during the period. On April 11, the market even touched an ATH of $3,244.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
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