Share a BTC cycle analysis data to judge the current price stage and future upside potential
This chart shows the relationship between the money supply of the world's four major central banks (M2, blue bar chart, left axis) and the price of Bitcoin against the US dollar (yellow line chart, right axis).
As the monetary policies of major central banks gradually tighten (M2 growth slows or even declines), Bitcoin prices may face greater volatility risks, and we need to pay close attention to the direction of central bank policies.
Review historical data:
In periods of increased money supply (such as 2020), Bitcoin prices usually rise sharply.
This suggests that more liquidity entering the market may have driven up the prices of risky assets such as Bitcoin.
In stages where the growth rate of money supply slows or decreases, Bitcoin prices tend to experience large fluctuations or even declines, which is related to reduced market liquidity and reduced investor risk appetite.
Overall, Bitcoin prices seem to be very sensitive to changes in money supply, especially during periods of loose monetary policy, showing strong price growth.
