Bitcoin’s price has been on a rollercoaster lately. After a dip to $74,000, buyers stepped in, pushing the price back towards $80,000. But this isn’t just random price action; it’s mirroring a key economic indicator.
The Global M2 Money Supply: A Bitcoin Predictor?
A crypto analyst on X, known as Colin, has highlighted a strong correlation between Bitcoin’s price and the global M2 money supply (a measure of the money supply). There’s a 108-day offset, meaning the M2 supply seems to predict Bitcoin’s movements about three months in advance. Colin’s charts show Bitcoin closely tracking the M2 supply since August 2024.
A Mini-Rally, a Crash, and the Prediction for May
Colin’s analysis shows the M2 indicator accurately predicted a recent mini-rally and subsequent crash. Now, the indicator suggests a significant price increase is on the horizon. While there might be some minor dips or consolidation before then, the M2 projection points to a major Bitcoin rally starting in early May – a “blast off” to potentially $128,000.
Short-Term Risks and the Path to the “Blast Off”
Despite the positive outlook, Colin acknowledges short-term risks. Concerns around “Trump tariffs” could impact the market. The key will be whether Bitcoin can hold above $78,000-$80,000 and maintain its alignment with the M2 supply. If it does, the May rally could be significant. At the time of writing, Bitcoin is trading at $79,255, up 5.5% in the last 24 hours.
