CandleFocus

Bitcoin rides another trend in M2 money supply expansion

The recent rally in Bitcoin's price is attributed to the growth of M2 money supply, a key factor behind the rise of BTC markets. The price of BTC is closely tied to M2 money supply shifts, and the hopes of a larger rally or a bull market in 2025 depend on decisions about the M2 money supply. The M2 landscape may vary regionally, affecting demand for crypto assets. BTC rallies often follow cycles of M2 growth with a lag of up to six months. Despite the inclusion of stablecoins, BTC expansion is seen as a hedge against uncertainty and inflation. BTC is still operating at a smaller scale compared to traditional markets. BTC makes up almost 60% of the crypto market, and there are expectations for additional inflows from traditional finance. Price predictions for BTC range from a significant correction to a continuous rally to six-digit prices. BTC accumulation has already occurred with large ETFs and whale holders increasing their wallets, and a retail supply crunch could lead to FOMO buying.

Related News