A recent analysis suggests Bitcoin’s price is closely tied to the global M2 money supply – the total amount of money circulating in the economy. This could mean big things for Bitcoin’s future price.
Bitcoin and the Global Money Supply: A Surprising Connection?
One analyst, Collin Talks Crypto, compared Bitcoin’s price history to global M2 money supply data. The idea is simple: more money in the system generally leads to higher Bitcoin prices, but with a bit of a delay.
To test this, Collin used two different time offsets: 78 days and 108 days. This means they shifted the M2 data forward by those amounts to see if Bitcoin’s price followed suit later.
Two Models, One Bullish Prediction
The 78-day model showed a strong correlation between past M2 increases and subsequent Bitcoin price rises. This suggests that M2 could be a good predictor of Bitcoin’s price about 78 days later. Based on this, the analyst believes Bitcoin might already be in a major bull run, potentially starting as early as April 7th, 2025. This run is expected to last through the second and early third quarters of 2025 (roughly May to July).
The 108-day model tells a slightly different, but still bullish, story. It suggests Bitcoin is currently building momentum for a big breakout, possibly starting around May 2025. While a bit slower than the 78-day model, it still points towards a significant price increase.
A Six-Figure Price Target?
Both models strongly suggest a link between the global M2 money supply and Bitcoin’s price over the past year or two. While short-term price movements can be unpredictable, the overall trend is clear: more money in circulation often leads to higher Bitcoin prices.
Based on these models, the analyst predicts a significant Bitcoin price surge. If the 78-day model is accurate, Bitcoin could jump from around $87,435 to $132,000. The 108-day model is even more optimistic, predicting a potential price of $140,000. Either way, a six-figure Bitcoin price is looking increasingly likely.