Storm Ahead? Bitcoin Price Could Tumble 20% Due To M2 Supply Concerns

Investors have expressed apprehension regarding the recent price fluctuations of Bitcoin, particularly in light of analysts’ predictions of a 20-25% decline in the global M2 money supply.

At $92,864, bitcoin is down nearly 9% from its recent high of just under $100,000. That fall is part of a trend of profit-taking by long-term holders, who sold 366,000 BTC in the last month, the most since April 2024.

Introduction To The M2 Money Supply Connection

Market researchers have been studying the relationship between Bitcoin prices and global M2 money circulation. Crypto analyst Joe Consorti noted that Bitcoin prices have regularly tracked M2 pricing, albeit 70 days later.

Bitcoin has tracked global M2 with a ~70-day lag since September 2023.

I don’t want to alarm anyone, but if it continues, bitcoin could be in for a 20-25% correction.

Global M2 in Bitcoin in