📊 Bitcoin Tracks M2 Money Supply in Emerging Market Pattern

Market Snapshot

After reaching an all-time high of $111,970 on May 22, 2025, Bitcoin has since pulled back, currently trading around $104,067. Analysts including Cas Abbé and Merlijn have identified a growing correlation between Bitcoin’s price movements and the M2 money supply, typically with a 70–90 day lag.

🔍 What’s Ahead?

Short-Term View:

Cas Abbé anticipates a possible dip into the $98,000–$100,000 range before a rebound takes shape.

Mid-Term Forecast:

Bill Barhydt, CEO of Abra Global, projects Bitcoin could reach $130,000 by August or September 2025, citing ongoing alignment with M2 trends.

Long-Term Outlook:

Should the historical M2-Bitcoin relationship persist, some analysts are setting their sights on a potential climb to $140,000 by the end of 2025.

💡 Investor Takeaway

With M2 money supply emerging as a potential leading indicator, traders are increasingly monitoring liquidity shifts for early clues on Bitcoin’s direction. The lag effect between M2 movements and crypto responses may offer a valuable edge in anticipating market trends.