As a seasoned financial analyst with extensive experience in traditional markets and cryptocurrencies, I find the recent Bitcoin sell-off may soon come to a halt due to an important economic indicator – the year-over-year M2 money supply. This signal has historically prompted investors to seek hedges against inflation, including Bitcoin and other cryptocurrencies.
As a researcher studying the cryptocurrency market, I’ve noticed the recent sell-off in Bitcoin might begin to ease up. This is due to the fact that the year-over-year M2 money supply has positively turned for the first time since November 2022. This is an important indicator investors use when searching for protective assets against inflationary pressures.
According to the cryptocurrency analysis firm Glassnode, there was a noticeable increase in Bitcoin “outflows from all groups during April,” indicating persistent selling pressure in the market, as mentioned in their May 2 update.
At the same time, the cost of Bitcoin decreased by 9.75% in the last month, now sitting at $59,586 according to information from CoinMarketCap.
As a financial analyst, I would interpret the recent development in M2 Money Supply as follows: The estimate of cash and short-term bank deposits across the nation has started growing year-over-year, surpassing the zero mark in May. This signifies an expansion in the overall amount of money circulating in the economy. Historically, such a trend tends to steer investors’ attention towards assets that perform well during inflationary periods.
As an analyst, I’ve observed that historically, the Bitcoin and cryptocurrency markets have shown superior performance compared to traditional financial markets during periods of increasing global M2 supply.
The increase in M2 money supply has led crypto investors to anticipate a rise in Bitcoin’s value. Previously, the Bitcoin supply had been decreasing since November 2022.
As a crypto investor, I’m thrilled to share some positive news with my fellow investors. In his recent post on X, renowned professional trader and financial author Oliver L. Velez announced that the M2 Money Supply has shown its first year-over-year increase since… Well, it’s been a while! This is an exciting development as it often signals economic expansion, which can be bullish for asset classes like cryptocurrencies. So let’s keep an eye on this trend and stay optimistic about the potential opportunities it may bring.
“All I can say is, “buckle-up” and stack harder. Any and all dips are buyable. Consider them gifts and ignore the bozos calling for doom. We are nowhere near the end of Bitcoin’s bull.”
As a researcher studying the crypto market, I’d express it this way: “The anticipated growth in M2 money supply could ignite quite an exciting phase for Bitcoin and my investment portfolio. Let’s see how things unfold.”
Raul Pal expressed his fondness for Global M2 money supply in October 2023, stating that Bitcoin tends to outperform the Nasdaq Composite Index during such periods, making crypto a potential “Super Massive Black Hole” of exceptional growth.
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2024-05-03 09:32