A groundbreaking analysis comparing Bitcoin’s price movement with global M2 money supply data suggests a major rally could be imminent, with potential gains pushing BTC above $140,000. The correlation study, conducted by crypto analyst Colin (“The M2 Guy”), identifies April 30 as a crucial inflection point that could mark the start of a two-month upward surge.
Understanding the Bitcoin-M2 Supply Correlation
The analysis reveals two significant offset correlations between Bitcoin’s price action and global M2 money supply: a 70-day and a 107-day offset. The more compelling 107-day correlation aligns with previous M2 supply patterns that preceded major Bitcoin price movements.
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Key Technical Indicators Supporting the Prediction
Currently trading at $84,310, Bitcoin has maintained a tight range between $83,700 and $84,300 over the past 24 hours. This consolidation phase mirrors similar patterns observed before previous breakouts, suggesting accumulation before a significant move.
Implications for Traders and Investors
While the analysis points to a specific date, Colin emphasizes focusing on the broader macro picture rather than exact timing. The projected two-month rally could present opportunities for both short-term traders and long-term investors, with several key considerations:
- Short-term traders should prepare for increased volatility
- Long-term holders have an opportunity to accumulate before the predicted surge
- The $140,000 target represents a 66% increase from current levels
Frequently Asked Questions
What is the significance of M2 money supply for Bitcoin?
M2 money supply represents the total amount of money in circulation, including cash, checking deposits, and easily convertible near money. Its correlation with Bitcoin prices often indicates potential market movements based on global liquidity conditions.
Why is April 30 considered a crucial date?
The 107-day offset correlation between M2 supply and Bitcoin price movements points to April 30 as the start of a potential rally, based on historical patterns and mathematical correlations.
What could prevent this prediction from materializing?
Several factors could impact the prediction, including regulatory changes, macroeconomic events, or shifts in institutional investor sentiment. Traders should always maintain proper risk management strategies.
As the crypto market anticipates this potential move, investors should remain vigilant and consider both technical and fundamental factors in their trading decisions. The correlation between Bitcoin and M2 supply adds another compelling data point to the growing body of evidence suggesting a continued bull market in 2025.