📉 Crypto Dips Hard — But Rising M2 and End of QT Could Fuel Rebound, Says Expert

Bitcoin falls 3.2% in 24 hours, hitting the crypto market and generating $1.15 billion in liquidations.
Despite the decline, Hashkey's Han Xu thinks the crypto bull market is entering a new mid-phase.
The end of quantitative tightening and increased M2 supply might boost Bitcoin, Han said.


Bitcoin falls below $104,000 for the first time in seven days, forcing Ethereum and Solana to fall 9% in 24 hours. Decline causes $1.15 billion in crypto futures liquidations.

Han told FXStreet that macroeconomic dynamics and on-chain data might boost crypto sentiment in an exclusive interview.

Ending QT and maybe relaxing the SLR might increase market liquidity and risk asset demand.

Han recognized Bitcoin's price increase and the projected $1 million per BTC aim may seem far-fetched. He said it was based on "asset pricing logic and monetary economics." Han said Bitcoin's supply is inelastic like gold but "with even tighter constraints."

Bitcoin's supply ceiling is 21 million BTC, and its halving mechanism reduces inflation every four years. The worldwide M2 money supply expansion owing to debasement continues to force investors to find a stable store of value.

According to SoSoValue statistics, US spot Bitcoin ETFs' total net inflows rose to $45.31 billion within 17 months of debut.

According to BitcoinTreasuries, Strategy (previously MicroStrategy) and its emulaters have driven corporate treasury bitcoin allocations to $85.2 billion.

Han expects Bitcoin's market valuation will reach that of marketable Gold (gold bars, coins, and ETFs) in a decade, making the $1 million per BTC price forecast likely.

Tradable gold's market worth is estimated at $5.6 trillion, or 25% of gold's entire value. Gold had a 30% CAGR in a macroeconomic stagnation environment like the 1970s "Han stated.

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