• Bitcoin rises to $63K as global M2 money supply surges to 107T, reflecting increased liquidity and inflation concerns.

• Bitcoin faces resistance near $65K, with technical signals suggesting potential for further upward momentum.

• Global M2's rapid rise in mid-2024 coincided with Bitcoin's breakout past $60K, highlighting a close relationship between the two.

Bitcoin's price appears to closely track the global M2 money supply, according to crypto analyst DrProfitCrypto. Posting on X, the analyst highlighted a strong relationship between the cryptocurrency and the global money supply, noting that Bitcoin "always follows the money supply, no matter what." 

https://twitter.com/DrProfitCrypto/status/1844888211425837361

Global M2 Money Supply and Its Steady Rise

The global M2 money supply, which includes cash, checking deposits, and liquid assets, saw an increase during this period. Starting at 99 trillion (T) in early 2023, the money supply consistently rose to over 107 trillion by late September 2024. 

Notably, this rise was particularly sharp from mid-2024 onwards, suggesting potential economic stimulus or expansive fiscal measures. Despite mild fluctuations early in the period, the overall trend pointed toward accelerated monetary expansion, peaking at over 107.5T by September 2024.

Bitcoin's Volatility and Upward Momentum

Bitcoin exhibited more volatile behavior over the same period, starting at around $50,000 in late 2023. Notably, it fluctuated between $45,000 and $60,000 throughout early 2024. However, a breakout occurred in mid-2024, with Bitcoin surging to $63,737.73 by the end of September. 

This upward momentum followed the rapid rise in M2, reflecting market trends where liquidity growth coincided with rising cryptocurrency demand. The increased money supply may have spurred Bitcoin's growth, making it an attractive option for investors seeking a hedge against inflation.

Key Technical Insights

At press time, Bitcoin was trading at $63,326.34, with support levels between $58,000 and $60,000. Meanwhile, resistance is expected in the $65,000 range, a critical level that could prompt further price growth if breached. 

Source: TradingView

The Relative Strength Index (RSI) remains slightly bullish at 55.80, while the MACD shows weakening bearish momentum. If the price breaks through $65,000, a stronger upward trend may emerge.