#bitcoin

$BTC and M2 Money Supply: Correlation or Coincidence?

Analysts are divided on whether the record-breaking global M2 money supply, now at $93.7T with a 7.45% annual growth rate, will fuel Bitcoin’s next big move. 📈

🔥 Bullish Case: Crypto YouTuber Lark Davis points to Bitcoin aligning with the 100-day offset of M2, predicting a parabolic surge to $250K. Analyst Crypto Auris sees $170K as the next target, driven by global liquidity. The US M2 alone hit $21.94T in May, up 4.5% YoY, with projections to double in a decade.

🧠 Skeptical View: Protos debunks the correlation, arguing it breaks down when zooming out to 2019. M2 rose years before Bitcoin’s spikes, and new highs in 2022 coincided with BTC’s FTX-driven crash. They claim M2 isn’t a direct driver of BTC liquidity.

📊 What’s Next? Bitcoin’s lagging M2 growth on longer timeframes, and recent market dips tied to Trump’s tariff moves add uncertainty. Is the money supply a catalyst for crypto, or just a noisy backdrop?