M2 money supply could trigger a ‘parabolic’ Bitcoin rally — Analyst

by

Ah, the ever-expanding M2 global money supply! It could very well ignite a Bitcoin rally that would make even the most stoic of investors chuckle with glee. But hold your horses, dear reader! An analyst warns against throwing your entire life savings into this bubbling cauldron of speculation.

“This isn’t a market to bet your whole stash on a quick correction,” quipped Pav Hundal, the lead analyst at the Australian crypto exchange Swyftx, while sipping his morning coffee. “But our central scenario is still for a strong March and beyond,” he added, probably while eyeing a chart that looked like a rollercoaster ride. 🎢

“It’s not all doom and gloom”

“In normal times, global loosening measures are a pretty reliable lead indicator for crypto,” Hundal mused, as if he were a philosopher pondering the mysteries of the universe. “The data we have suggests that spot buyers are active right now, and the US has raised its debt ceiling by a whopping $4 trillion dollars!” Talk about a financial party! 🎉

“It’s not all doom and gloom,” he reassured us, as if trying to calm a room full of anxious cats. The year-on-year fixed exchange rate for the M2 money supply of the four major central banks reached 3.65% in January, according to MacroMicro data. Who knew numbers could be so exciting?

Read more$70 million in 24 hours: Can Ethereum crack $4,000 thanks to whales?

Many crypto analysts, those brave souls, point to historical trends where a rise in global M2 money supply has led to Bitcoin (BTC) prices soaring higher than a kite on a windy day. Increased liquidity and lower interest rates? Yes, please!

Economist Lyn Alden, in a September research report, boldly declared that Bitcoin moves in the direction of global M2 83% of the time. That’s a statistic that could make even the most skeptical investor raise an eyebrow.

US money supply surge may “fuel Bitcoin’s parabolic run-up”

Crypto analyst bitcoindata21 tweeted on Feb. 25, “With weakness in the dollar causing a net positive effect on Global M2, just a matter of time hopefully before Bitcoin realizes.” Realizes what? That it’s a digital currency? 🤔

Read moreBitcoin halving could be a ‘sell-the-news’ event, at least for a few months

Echoing a similar sentiment, crypto analyst Colin Talks Crypto chimed in on X, stating that “the Global M2 Money Supply predicts a BIG MOVE is coming for Bitcoin.” Big moves? Sounds like a dance party waiting to happen! 💃

Investment research account Bravo Research added their two cents in a Feb. 25 X post, noting that the US money supply had doubled in just 10 years. “This liquidity surge could fuel Bitcoin’s parabolic run-up,” they said, probably while dreaming of dollar signs.

All this excitement comes as Bitcoin dipped below $90,000 on Feb. 25 for the first time since November, after Trump announced that his planned 25% tariffs on Canada and Mexico “are going forward on time, on schedule.” Talk about a plot twist! 📉

Read More

2025-02-26 09:33