As an experienced financial analyst, I believe that the growing M2 money supply in the United States could serve as a significant catalyst for Bitcoin’s next bull run. Historical chart patterns suggest that there is a strong correlation between the growth of the money supply and Bitcoin price movements.
Market analysts and historical charts indicate that the expanding US money supply may serve as a catalyst for further gains in Bitcoin’s price.
M2 money supply growth could catalyze the next bull run
The M2 money supply represents the total amount of cash and short-term US deposits, and historical data shows that its expansion has often preceded past Bitcoin price surges.
According to Jamie Coutts, the chief crypto analyst at Realvision, the expansion of the money supply could be a significant factor in driving the next phase of the Bitcoin price trend. He expressed this viewpoint in a May 16 blog post.
“This is due to a high correlation with $BTC bull cycles. Of the big 3 I track in my Bitcoin/Liquidity framework, Global M2 appears to capture the most of the moves.”
As an analyst, I’ve observed that the fluctuations in Bitcoin’s price appear to be more significantly influenced by alterations in the money supply rather than its nominal value, based on my analysis of the data from Coutts.
“The rate of change in money supply is more important than the nominal value. The chart confirms what our MSI performance table suggests: Bitcoin usually moves with shifts in M2 momentum.”
In early May, the M2 money supply showed a yearly increase for the initial time since November 2023, indicating that inflation concerns among investors might lead them to consider investments in assets like Bitcoin as potential protective measures.
If the value of the U.S. dollar drops below the $101 mark in its price movement, as suggested by Coutts, this could serve as another trigger for Bitcoin’s price increase.
“The Dollar is range bound. A break below 101 would be rocket fuel for Bitcoin.”
Bitcoin breaks month-long downtrend: analyst
Bitcoin marked a break from its 30-day consecutive daily decline as per the assessment of well-known cryptocurrency analyst Rekt Capital. He communicated this information to his substantial following of 468,000 people via a social media post.
“Bitcoin has broken its Daily Downtrend which started one month ago in mid-April. When downtrends get broken, uptrends occur. Bitcoin has finally recorded its first Higher Higher since bottoming at $56,000.”
On the four-hour Bitcoin chart, there was a significant upward price shift, marking the end of a nearly five-week long downtrend that began on April 8th.
Bitcoin’s RSI reached a peak of 77 on May 16, which now stands at 66. This indicates that Bitcoin is currently priced fairly. However, it might have to drop down to around the 50 mark for Bitcoin’s price to experience stronger upward momentum.
The Relative Strength Index (RSI) is a commonly employed technical analysis tool that assesses the size of recent price movements to determine if an asset has been under- or overbought.
The price of Bitcoin encounters notable obstacles near the $66,500 level. Should it surge past this threshold, approximately $111 million in short positions would be liquidated on various trading platforms based on recent Coinglass statistics.
Read More
- DOGS PREDICTION. DOGS cryptocurrency
- SQR PREDICTION. SQR cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- METIS PREDICTION. METIS cryptocurrency
- UXLINK PREDICTION. UXLINK cryptocurrency
- JASMY PREDICTION. JASMY cryptocurrency
- STG PREDICTION. STG cryptocurrency
- CLOUD PREDICTION. CLOUD cryptocurrency
- QUINT PREDICTION. QUINT cryptocurrency
- KNINE PREDICTION. KNINE cryptocurrency
2024-05-16 20:18