**Global M2 is Shrinking—Will Bitcoin Take a Hit Too? 📉**
PLUS: Major changes coming for Gary Gensler’s controversial SAB 121 regulation 🪓
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### **GLOBAL M2 & BITCOIN: A DYNAMIC DUO? 🥊**
Okay, the boxing emoji might’ve been a stretch—this isn’t a fight, it’s more like a partnership.
**M2** represents the total cash in circulation, money in bank accounts, and retail money market mutual funds. Simply put: more M2 = more liquidity to invest, including in Bitcoin.
Historically, Bitcoin’s price has trailed M2 movements by about **70 days**. When M2 grows, Bitcoin tends to follow. But here’s the catch—right now, **M2 is shrinking**. 👇 (see chart)
If the trend holds, Bitcoin could see a pullback in the coming months.
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### **IS A DOWNTURN THE BEGINNING OF A BIGGER BULL RUN?**
This isn’t all doom and gloom. If history repeats, like the **2016/2017 bull market**, a potential dip could be just a pause before Bitcoin rockets again.
### **WHAT COULD REIGNITE BITCOIN?**
- **Money printing** and **rate cuts** could pump liquidity back into the system—and eventually into Bitcoin.
Guess who might be leading this charge? Uncle Sam.
The U.S. government racked up massive COVID-era debt, with repayments due in 2025. Likely strategy?
1. Print more money →
2. Pay off loans →
3. Slash interest rates →
4. Borrow again at cheaper rates.
This might sound frustrating if you’re saving in fiat, but for Bitcoin holders, this could fuel the next big run.
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Whether Bitcoin stays tied to M2 or breaks free, its long-term outlook remains
#bullish #bitcoin n
#M2 #CryptoNewss #MarketInsights