The correction that Bitcoin (BTC) experienced over the past 24 hours has sparked discussions about its correlation with the M2 money supply. Analysts like Raoul Pal and the CEO of Abra use the relationship between Bitcoin and the M2 money supply to predict the price of Bitcoin.
Bitcoin to $130,000 in August/September this year?
Bill Barhydt, the CEO of Abra Global, shared his analysis on the increasing trend of Bitcoin against the M2 money supply via his account on platform X. The consensus is that as the global money supply increases, high-risk assets like Bitcoin benefit significantly. The concept is simple: the more money that circulates, the less value fiat currencies have, granting greater value to emerging hedge assets like Bitcoin.
According to him, most circulating charts predict a bearish outlook in the short term. It is most likely highlighted that the price of Bitcoin could drop to $100,000 in the coming days before pushing to a new historical high of $130,000 in August/September.
As Barhydt pointed out, there are many reasons to believe in this outcome. Despite the silence around these reasons, institutional adoption, such as the recent purchase of 4,020 Bitcoins by Strategy Company, helps drive scarcity.
