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Global M2 Money Supply Shows Where The Bitcoin Price Is Headed Next And It’s $100,000 | Bitcoinist.com
Bitcoin Price Mirrors Rise In Global M2 Money Supply
On April 19, a crypto analyst with the X (formerly Twitter) account, ‘Collin Talks Crypto’ released an interesting technical analysis comparing Bitcoin’s price to the global M2 money supply. The basis of this analysis is that when there is more money available globally, Bitcoin’s price tends to go up, but with a delay
Related Reading: Global M2 Vs. Bitcoin Shows Bullishness As Analyst Sets ‘Blast Off’ Date, Here’s WhenTo test this, the analyst shared two charts showing a 78-day and 108-day offset. They shifted the M2 money supply data forward by these two timelines to see if Bitcoin would follow it after a delay. The 78-day chart model suggests a strong correlation between past M2 trends and current Bitcoin price action. This implies that M2 may be the leading indicator to determine BTC’s price moves 78 days later
Conversely, the 108-day offset model suggests that Bitcoin remains in a sideways trading phase. Still, it is steadily building momentum, potentially setting the stage for a massive breakout that could begin by May 2025. Though it falls behind the 78-day model by about a month, the 108-day model still agrees with the overall projection that Bitcoin is likely heading higher. This reinforces the analyst’s belief that BTC follows the path of the global M2 supply to new highs
$132,000 – $140,000 Target In Sight
Both offset chart models highlighted by Collin show a strong correlation between global M2 money supply and BTC over the past 1-2 years. The crypto analyst notes that while short-term movements may vary slightly, the macro trend is unmistakable: when global liquidity rises, Bitcoin‘s price tends to follow.
Related Reading: Bitcoin Price Breakout: Why $85,700 Is The Most Important LevelWhether BTC has already launched according to the 78-day model or is preparing to rally based on the 108-day model, the analyst believes that a six-figure price target is becoming increasingly likely. He predicts that Bitcoin will see a massive increase from its current price of $87,435 to $132,000 if it follows the 78-day offset. In contrast, the cryptocurrency is poised for an even higher price target of $140,000 if it mirrors the 108-day offset model.