Anticipated Bitcoin Price Movements Linked to Global M2 Money Supply
Bitcoin is seeing stability around $80,000, reducing the risk of a drop below $70,000. Analyst Colin indicates a correlation with global M2 money supply suggesting a potential liquidity influx could result in significant price movements towards $120,000 or higher by mid-year. Market trends indicate positive trends for Bitcoin’s future prices.
Bitcoin has reportedly stabilized within the $80,000 range, having traded between $80,000 and $90,000 over the previous week. This stability decreases the likelihood of a drop below $70,000 and introduces the potential for a significant increase above $90,000. Analyst Colin, known as “The M2 Guy,” has identified a strong correlation between Bitcoin and the global M2 money supply, suggesting an impending liquidity influx that could lead to notable price movements in Bitcoin.
Analyzing Bitcoin’s price action against the global M2 money supply indicates that a major price shift is anticipated in the forthcoming months. Colin’s analysis hinges on the timing of liquidity changes across global markets and Bitcoin. Based on historical trends of money supply expansion and Bitcoin’s responses, he presents two scenarios that could unfold in late March or late April.
The global M2 money supply, which encapsulates the total liquid money circulating within the economy, serves as a valuable indicator for determining capital flows into riskier assets, such as Bitcoin. Colin particularly examines Bitcoin’s price in relation to the M2 money supply using two offsets: 70 days and 107 days. His findings reveal that these offsets present the most robust correlation with Bitcoin’s price across various timeframes, with the 107-day offset demonstrating a stronger mathematical correlation.
Colin proposes two scenarios derived from these offsets; the initial scenario suggests an immediate surge around March 24, aligned with the 70-day offset. The alternative scenario indicates a more substantial price movement occurring around April 30 if the liquidity shift aligns with the 107-day offset.
Irrespective of the timing, the influx of liquidity into Bitcoin is expected to serve as a catalyst, potentially propelling the asset beyond the $100,000 mark and reaching new all-time highs. While Colin does not provide a precise price target, projections based on the global M2 money supply imply a break surpassing $120,000. The 70-day offset forecast places Bitcoin near $122,000 by June, whereas the 107-day offset anticipates a slightly delayed, yet more substantial rally, targeting approximately $130,000 by July.
As of now, Bitcoin is trading at $85,850, reflecting a 3% increase over the past 24 hours. Current market trends indicate that Bitcoin has entered a phase of accumulation, suggesting positive investor sentiment and potential further price increases soon.
In summary, Bitcoin’s stabilization within the $80,000 range indicates a reduced risk for significant downward movements and opens the door for potential upward trends. Colin’s analysis linking Bitcoin to the global M2 money supply suggests two favorable scenarios for significant price rallies, forecasting Bitcoin could exceed $120,000 under certain liquidity conditions. As market conditions evolve, investor interest appears to be increasing, positioning Bitcoin for possible future milestones.
Original Source: bitcoinist.com
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