Bitcoin has established stability in the $80,000-$90,000 range, with technical analysis suggesting a major price move ahead based on global M2 money supply correlations. As Bitcoin continues trading above $85,000 following recent Fed policy shifts, new data points to potential targets above $120,000.
Global M2 Money Supply Correlation Signals Bitcoin Price Surge
Crypto analyst Colin (“The M2 Guy”) has identified a significant correlation between Bitcoin’s price action and global M2 money supply movements. His analysis reveals two potential scenarios based on historical offset patterns:
- 70-day offset scenario: Projects potential surge to $122,000 by June
- 107-day offset scenario: Indicates stronger rally to $130,000 by July
Key Timeline Scenarios for Bitcoin’s Next Major Move
The analysis presents two critical dates for potential price action:
| Scenario | Target Date | Price Target |
|---|---|---|
| Early Move (70-day offset) | March 24, 2025 | $122,000 |
| Delayed Move (107-day offset) | April 30, 2025 | $130,000 |
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Understanding the M2 Money Supply Impact
The global M2 money supply serves as a crucial metric for predicting capital flows into risk assets like Bitcoin. Key findings include:
- Strong mathematical correlation with 107-day offset pattern
- Historical accuracy in predicting major price movements
- Potential for new all-time highs above $100,000
Current Market Position and Accumulation Trends
Bitcoin currently trades at $85,850, showing a 3% increase over 24 hours. Market indicators suggest an ongoing accumulation phase, supported by:
- Reduced risk of breakdown below $70,000
- Increasing buying pressure in the $80,000-$90,000 range
- Strong support levels maintaining current price stability
FAQ
What is the significance of M2 money supply for Bitcoin?
M2 money supply represents the total liquid money in circulation and helps predict how capital flows into risk assets like Bitcoin.
When is Bitcoin expected to reach its next major price target?
Analysis suggests either late March ($122,000) or late April ($130,000) depending on which offset pattern manifests.
What supports the current accumulation theory?
Strong price stability in the $80,000-$90,000 range and reduced risk of significant downside movement indicate accumulation.