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Bitcoinist 2025-03-21 06:00:37

Bitcoin Vs. Global M2 Money Supply Shows A Big Move Coming, Here’s The Target

Bitcoin looks like it has found stability within the $80,000 range after trading within $80,000 and $90,000 throughout the past seven days. This reduces the risk of a breakdown below $70,000, and the possibility of another strong upward move above $90,000 is now creeping into the picture. Crypto analyst Colin, also known as “The M2 Guy,” noted a significant correlation between Bitcoin and the global M2 money supply. His latest analysis, shared on social media platform X, suggests that an impending liquidity influx could drive BTC into a major price move in two different scenarios. M2 Money Supply And Bitcoin’s Liquidity-Driven Rally Technical analysis shows that Bitcoin’s price action against the global money supply is pointing to a big move in the coming months. This outlook, noted by analyst Colin, revolves around the timing of a liquidity shift between global markets and BTC. His analysis presents two possible scenarios based on historical patterns of money supply expansion and Bitcoin’s price response, each pointing to a major price move either in late March or late April. The global M2 money supply, which represents the total amount of liquid money circulating in the economy, is a good metric for predicting how capital flows into risk assets, including BTC. Notably, Colin’s analysis focuses on Bitcoin’s price offset with the Global M2 money supply, particularly with the 70-day offset and the 107-day offset. Bitcoin’s price can be compared with different offsets with the Global M2 money supply, but analysis shows that these two offsets have the best correlation with BTC’s price across multiple timeframes. However, the mathematical correlation seems to be stronger in the case of the 107-day offset. Colin’s analysis, therefore, outlines two primary scenarios based on these offsets. In the first case, BTC could experience an early surge around March 24, aligning with the 70-day offset. The second scenario suggests that if the liquidity shift follows the more historically accurate 107-day offset, the major move would take place around April 30. BTC’s Incoming Price Targets Regardless of which timeline plays out, the expectation of liquidity flowing into Bitcoin is the same. This flow of liquidity into BTC could be the much-needed primer to push the asset above the $100,000 price level again and potentially to new all-time highs. Although Colin’s analysis does not specify an exact price target , projections of the global M2 money supply point to a break above $120,000 in each case. The 70-day offset puts Bitcoin at a price target around $122,000 before June. Meanwhile, the second scenario, which aligns with the 107-day offset, projects a slightly delayed but potentially more powerful rally and BTC reaching around $130,000 by July. At the time of writing, Bitcoin is trading at $85,850, up by 3% in the past 24 hours. Current buying trends show that Bitcoin is now in an accumulation zone.

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