Bitcoin Might Plummet 20% Due to M2 Money Supply Correlation
A recent analysis indicates that Bitcoin might drop by as much as 20% following its historical correlation with the global M2 money supply. Since September 2023, Bitcoin has demonstrated a notable 70-day delay in reflecting changes in the M2 money supply, creating a complex relationship between currency supply and Bitcoin pricing. Investors should be cognizant of this impending risk, as monetary policy shifts can have major implications for cryptocurrencies. Understanding these economic factors will be essential for traders as they evaluate the potential next steps in navigating this turbulent market landscape. Insight into the M2 money supply will empower crypto enthusiasts to make informed decisions about their investments in Bitcoin and avoid pitfalls in a volatile environment.