New data shows a significant correlation between Bitcoin price movements and the M2 money supply of 21 major central banks—this relationship may influence the future trend of BTC.

Key highlights:

M2 up, Bitcoin up: Historically, increases in M2 (a broad measure of money supply) have coincided with rises in Bitcoin. A typical example? The bull market during the COVID-19 pandemic from 2020 to 2021, driven by unprecedented monetary stimulus measures.

Current status: Bitcoin trading price is $105,000, up 1.2% for the day. Meanwhile, global M2 growth is slowing, but remains positive, indicating moderate system liquidity.

Implications:

• High M2 = Strong BTC: During periods of monetary expansion, investors seek hard assets like Bitcoin to hedge against inflation.

M2 slowdown = BTC momentum slowdown: As central banks begin to tighten policies, the upward momentum of Bitcoin may weaken—unless new bullish catalysts emerge.