Bitcoin Price Anticipated to Surge as Global M2 Money Supply Reaches Record High
The global M2 money supply has reached an all-time high, prompting expectations for a Bitcoin rally beginning in May 2025. The correlation between M2 growth and Bitcoin movement is over 80%, indicating strong bullish potential. Analysts predict significant price increases amidst rising open interest and investor confidence, with estimates suggesting Bitcoin may exceed $250,000 this year, marking a transition into a bullish phase.
The recent surge in the global M2 money supply, which has reached an all-time high, is anticipated to catalyze a significant Bitcoin rally commencing in May 2025. This development ignites optimism regarding Bitcoin’s potential as it is increasingly viewed as a hedge against inflation and currency volatility within traditional markets. The correlation between Bitcoin price movements and the growth in M2 money supply exceeds 80%, suggesting that an influx of liquidity may propel Bitcoin prices upward.
The rise in the global M2 money supply signifies enhanced financial momentum, injecting liquidity into the economy which typically motivates investment in riskier assets, including cryptocurrencies. Recent analyses posit that the M2 money supply may expand by approximately $19 trillion, pushing the total money supply toward an estimated $127 trillion. This historical relationship between Bitcoin and M2 indicates that Bitcoin is likely poised for a bullish phase, mirroring M2’s anticipated growth.
Forecasting the next few months, analysts predict that Bitcoin is set to experience a notable price increase throughout May and June. This anticipated bull run will likely come on the heels of increased liquidity in the market. While some analysts foresee a potential temporary dip in Bitcoin prices in July, a resurgence is expected later in the month, continuing through the second half of the year, instilling a sense of confidence among investors.
A noteworthy development contributing to this optimistic outlook is the 10% surge in Bitcoin’s open interest over the past day, representing an additional $2.4 billion in market value. This influx of capital reflects heightened investor confidence and suggests that substantial price movements may be imminent for Bitcoin. Such dynamics affirm the bullish sentiment surrounding Bitcoin, as indicated by market analysts.
Charles Hoskinson, the founder of Cardano, has projected that Bitcoin may reach $250,000 in the current year, correlating with the burgeoning bullish sentiment driven by increasing global liquidity. Market trends suggest that Bitcoin is poised for a significant price increase, supported by historical cycles. Analysts believe Bitcoin is transitioning into its bullish phase, potentially resulting in new all-time highs and exceeding the $200,000 mark.
The current market cycle is believed to have advanced past the bear and accumulation phases, entering a phase that historically yields substantial price surges. Moreover, accumulation behaviors among large holders, or whales, who have recently transferred significant amounts of Bitcoin to unknown wallets, is limiting selling pressure and contributing to a bullish outlook on the cryptocurrency.
In conclusion, the recent surge in the global M2 money supply signifies a potentially monumental shift for Bitcoin, which may see a significant rally commencing in May 2025. With strong historical correlations between M2 growth and Bitcoin price movements, coupled with increased investor confidence and open interest, the cryptocurrency seems poised for a bullish phase. Predictions from market analysts suggest that Bitcoin could reach unprecedented price levels this year, asserting its position in the global financial landscape as a hedge against inflation.
Original Source: themarketperiodical.com
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