Bitcoin’s Price Movement: A Deep Dive into the Global M2 Money Supply Correlation
In the ever-evolving world of cryptocurrency, a novel analysis is making waves. This study draws parallels between Bitcoin’s price trajectories and the worldwide M2 money supply, offering intriguing insights into Bitcoin’s potential future. By leveraging a predictive offset model, the analysis hints at a close relationship between Bitcoin’s pricing and global liquidity trends. If the past is any indicator, Bitcoin may be on a path to surpass the $100,000 mark.
The Global M2 Money Supply’s Influence on Bitcoin’s Price
On April 19, a crypto analyst operating under the handle ‘Collin Talks Crypto’ on X (formerly known as Twitter) unveiled a compelling technical analysis. This assessment juxtaposes Bitcoin’s price against the global M2 money supply, suggesting that an increase in global capital availability typically leads to a rise in Bitcoin’s value, albeit with a time lag.
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To substantiate this hypothesis, the analyst presented two charts with offsets of 78 and 108 days. These charts project M2 money supply data forward by the respective timelines to determine if Bitcoin’s price follows suit after the delay. The 78-day offset chart reveals a pronounced correlation between historical M2 trends and the present Bitcoin price dynamics, positing M2 as a potential leading indicator for Bitcoin’s price trajectory 78 days later.
According to the model, Bitcoin might already be in the throes of a breakout starting April 7, 2025, reflecting an earlier spike in global M2 supply. Should this correlation hold, the market might be at the cusp of another significant bull run, with Bitcoin echoing the sharp rise previously embedded in the M2 data. This bullish trend is anticipated to persist through the second quarter of 2025 and into the early third quarter, spanning from May to July.
Conversely, the 108-day offset model indicates that Bitcoin is currently in a consolidation phase but is gradually gaining momentum. This positions it for a substantial breakout, potentially commencing by May 2025. Despite trailing the 78-day model by approximately a month, the 108-day model still aligns with the overarching prediction that Bitcoin is poised for upward movement, reinforcing the analyst’s conviction that Bitcoin follows the global M2 supply’s trajectory to new heights.
Targeting $132,000 to $140,000: Bitcoin’s Future Prospects
Both offset chart models showcased by Collin reflect a strong correlation between the global M2 money supply and Bitcoin over the past one to two years. While short-term price movements may differ slightly, the macro trend is evident: as global liquidity increases, Bitcoin’s price tends to rise in tandem.
Whether Bitcoin has already surged according to the 78-day model or is gearing up for a rally based on the 108-day model, the analyst asserts that a six-figure price target is becoming increasingly attainable. He forecasts that Bitcoin could experience a dramatic surge from its current price of $87,435 to $132,000 if it adheres to the 78-day offset. Alternatively, the cryptocurrency could reach an even loftier price target of $140,000 if it aligns with the 108-day offset model.
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