The price of Bitcoin has plunged over the last 24-hour period amid rising geopolitical tensions, to now trade around $61,000 after losing nearly 7% of its value. The drop- however, may be a temporary setback, as a cryptocurrency analyst has recently pointed to a potential surge to $90,000 this year.
In post shared on the microblogging platform X (formerly known as Twitter) with his over 35,000 followers, analyst Joe Consorti noted that if Bitcoin remains correlated to the growth of the global M2 money supply, the cryptocurrency is “heading to $90,000 before the end of the year.”
If bitcoin continues following the trajectory of global M2 money supply, it's heading to $90,000 before the end of the year. pic.twitter.com/Kd3YlDT12H
— Joe Consorti ⚡️ (@JoeConsorti) September 30, 2024
Notably, the global money supply in the United States, the Eurozone, Japan, and China has for the first time in history reached $89.7 trillion, having skyrocketed by a whopping $7.3 trillion over the past year, as reported.
The growth in the global money supply was the largest in three years and was similar to the jump seen in the initial pandemic response in the first half of 2020. In the United States alone, the amount of money in circulation surged $410 billion year-over-yar to $21.2 trillion, which means that in the beginning of 2020, money supply in the country was 27% below its current levels.
The growth of global money supply and growing geopolitical tensions have helped the price of gold have one of its best year-to-date performances of this century, with the precious metal now trading at $2,660 after rising nearly 30% year-to-date.
Notably, Societe Generale has shifted 100% of its commodity allocation to gold, driven by geopolitical risks and a weakening broader commodity market.
The French bank increased its gold holdings to 7% of its total asset allocation, reflecting a 40% quarter-over-quarter rise. This pivot toward gold signals growing confidence in the yellow metal as a safe-haven asset amid ongoing uncertainties in global markets.
Gold’s latest rise came after Iran fired around 180 ballistic missiles at Israel in what Iran’s Revolutionary Guard Corps said was a retaliation for the assassinations of Hamas’s political leader and an Iranian commander.
The M2 money supply, which includes physical currency in circulation, savings and time deposits, and money market funds, has been growing every month since February.
Featured Image via Unsplash.
