Bitcoin and the Global M2 Money Supply: An Exciting Connection 📈
Since September 2023, an interesting correlation can be observed: The Bitcoin price seems to follow the development of the global M2 money supply with a delay of about 70 days.
What does that mean? The global M2 money supply is considered an indicator of available liquidity and the general economic situation. Its development can therefore provide hints about the future price development of assets like Bitcoin.
The graphic illustrates this connection: The global money supply (white) leads the way, while the Bitcoin price (orange) follows with a time delay. If this pattern continues, it could mean a slight correction in the Bitcoin price in the coming weeks. 🤓