Bitcoin Shows Strong Link to M2 Money Supply in Latest Market Trends
📉 Market Update
Following its record high of $111,970 on May 22, 2025, Bitcoin has seen a pullback, trading near $104,067. Analysts like Cas Abbé and Merlijn have highlighted a noticeable pattern where Bitcoin's price trends often follow the M2 money supply, with a lag of around 70 to 90 days.
🔮 Looking Ahead
Short-Term Forecast: Cas Abbé expects Bitcoin to potentially dip to the $98,000–$100,000 range before staging a recovery.
Mid-Term Outlook: Bill Barhydt, CEO of Abra Global, predicts Bitcoin could hit $130,000 by August or September 2025, supported by the M2 correlation.
Long-Term Projection: If the historical trend between M2 and Bitcoin continues, some analysts believe the price could climb to $140,000 later in 2025.
🧠 Investor Insight
Traders and investors are paying close attention to M2 money supply movements as a potential early signal for Bitcoin price changes. The typical delay between M2 adjustments and Bitcoin's reaction suggests that liquidity trends may offer clues about upcoming market shifts in the crypto space.
