Bitcoin closely mirrors the global M2 money supply surge, with correlations peaking at 93% across multiple timeframes in recent analysis.
BTC's breakout above previous highs, paired with rising M2 and a CBBI of 79, signals more bullish momentum ahead this cycle.
Despite cautious sentiment, synchronized BTC and M2 growth patterns point to sustained upside potential as disbelief fuels possible rallies.
Bitcoin shows bullish momentum as global M2 money supply hits a new all-time high. Recent data shows a powerful surge in both metrics, confirming their historic correlation. BTC now trades at approximately $108,312 after recovering sharply from early 2025 lows. Despite this climb, social sentiment remains cautious. Yet, metrics suggest more upside potential ahead.
Besides price movements, technical indicators show Bitcoin's strength remains intact. The CBBI currently reads 79, signaling plenty of room for growth. Furthermore, BTC has successfully retested its previous all-time high, now acting as strong support. This action validates the bullish structure developing over recent months. Additionally, long-term indicators suggest the current cycle has not yet peaked.
Strong Correlation With Global M2
Bitcoin’s tight link to global M2 money supply is becoming increasingly evident. The 82-day offset used in the analysis reveals compelling patterns. This adjustment accounts for policy reaction lags. Consequently, it strengthens the relationship between monetary expansion and BTC price action.
Source: Collins Talks Crypto
The highest 60-day correlation stood at 92.3%, the strongest recorded in the dataset. Moreover, the 90-day and 30-day periods showed correlations of 90.8% and 84.5% respectively. These short-term figures reflect strong ongoing alignment. On longer horizons, the 1-year correlation hit 88.9%, and the 1.5-year measurement climbed to 93%. However, the 182-day custom period posted a weaker 65.5% reading, suggesting variable mid-term dynamics.
Market Dynamics Remain Bullish
Bitcoin’s rebound from its early 2025 correction has been sharp. Besides that, its climb mirrors M2’s consistent upward momentum. Monetary expansion has accelerated toward the end of the measured period. Hence, both BTC and M2 are now entering fresh territory.
Additionally, historical analysis reveals that such synchronized movements often precede major market surges. The recent breakout, followed by support confirmation, adds further bullish weight. Moreover, no major overheating is visible across core Bitcoin metrics.
These factors align with bullish market sentiment among long-term holders. However, broader sentiment remains mixed, reflecting skepticism toward the breakout’s sustainability. Consequently, this skepticism could fuel future rallies as disbelief turns into FOMO.
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