Bitcoin's recent price movements have shown a notable correlation with the M2 money supply, a broad measure of money in circulation. Analysts suggest that this relationship could provide insights into Bitcoin's future price trajectory.

📉 Current Market Dynamics

After reaching an all-time high of $111,970 on May 22, 2025, Bitcoin experienced a correction, with prices dipping to approximately $104,067. Analysts like Cas Abbé and Merlijn have observed that Bitcoin's price movements often align with changes in the M2 money supply, albeit with a lag of about 70 to 90 days .

🔮 Future Projections

Short-Term Outlook: Cas Abbé anticipates that Bitcoin may further correct to the $98,000–$100,000 range before rebounding to new highs.

Mid-Term Forecast: Abra Global CEO Bill Barhydt predicts that Bitcoin could reach $130,000 by August or September 2025, based on the M2 money supply correlation .

Long-Term Potential: Some analysts, observing the historical patterns between M2 supply and Bitcoin's price, suggest that if the trend continues, Bitcoin could aim for targets as high as $140,000 later this year .

🧠 Strategic Considerations

Investors are closely monitoring the M2 money supply as a potential leading indicator for Bitcoin's price movements. The observed lag between changes in M2 and Bitcoin's response suggests that shifts in global liquidity could precede significant price actions in the cryptocurrency market.

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