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Bitcoin Under Pressure Amid US Tariffs
Bitcoin (BTC) is currently facing downward pressure due to the recent imposition of a 10% tariff by the United States, effective from April 5. Over the last 24 hours, Bitcoin’s value dipped by more than 7%. However, it has shown signs of a minor rebound, trading in the low $80,000s at the moment.
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Potential Bitcoin Upsurge Linked to M2 Money Supply Increase
In a recent post on social media platform X, renowned crypto analyst Titan Of Crypto suggested an optimistic outlook for Bitcoin despite the current market sentiment. This outlook is based on a noticeable rise in the global M2 money supply, which could signal a forthcoming rally for Bitcoin. The analyst presented a chart showing Bitcoin’s historical pattern of trailing the M2 money supply with a slight delay.
For those unfamiliar, the M2 money supply is a comprehensive measure encompassing all the money circulating within an economy. This includes physical currency, checking deposits, and near-money assets like savings accounts and small time deposits. Central banks closely monitor M2 to evaluate economic health and inform monetary policy decisions.
Historical data suggests a strong correlation between Bitcoin and fluctuations in the M2 money supply, often manifesting a lag of about 70 to 107 days. During the peak of the COVID-19 pandemic, substantial surges in the M2 supply due to economic stimulus were followed by notable Bitcoin rallies. Crypto analyst Merlijn The Trader supported Titan’s analysis, highlighting a potential reversal in the M2 money supply that could predict similar movements in Bitcoin.
Bitcoin’s Price Pullback: A Healthy Correction?
Despite mounting concerns over Bitcoin’s sluggish performance, some market analysts argue that this recent price drop is a healthy correction rather than the end of the bullish trend. This viewpoint aligns with the broader decline in global equity markets.
Bitcoin analyst Bitcoin Wukong offered insights on the leading cryptocurrency’s current price trajectory. In a recent post, the analyst advised investors to maintain a broad perspective, viewing the pullback as a correction following a Trump-induced rally, rather than the commencement of a bear market. The $66K–$73K range still presents robust structural support.
Nonetheless, Bitcoin encounters several significant resistance levels. Titan Of Crypto pointed out in a recent analysis that Bitcoin must surpass the Ichimoku Cloud resistance near $88,000 to continue its upward momentum.
Despite these challenges, Bitcoin has maintained bullish momentum, as evidenced by a positive monthly candle close in March. As of the latest data, Bitcoin is trading at $78,566, reflecting a 5% decrease over the past 24 hours.
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