Bitcoin Price Could Soar as Global M2 Money Supply Expands | Airdrop Alert Pro

The latest analysis by crypto experts acknowledges that Bitcoin (BTC) price movements are closely related to the global M2 currency supply. Based on this, they predicted the potential bullish momentum of the crypto market in late March.

As global liquidity expands, analysts predict that Bitcoin and other digital assets may experience major rallies starting around March 25, 2025 and may continue until mid-May.

Global M2 and its impact on Bitcoin

The M2 money supply represents a wide range of liquidity, including cash, check deposits and easy-to-convert near-monetary assets. Historically, Bitcoin proves Closely related to M2 fluctuationsas liquidity in financial markets increases, usually drives demand for alternative assets such as cryptocurrencies.

Colin talked about X (Twitter) analyst Crypto, highlighting this correlation, which suggests a sharp increase in M2 worldwide. He describes it as a “vertical line” on the chart, which indicates that asset prices are about to rise.

According to his predictions, stock rally Bitcointhe wider cryptocurrency market is expected to begin on March 25, 2025 and until May 14, 2025.

“The global M2 money supply chart has just printed another vertical line. The rally of stocks, bitcoin and cryptocurrencies will be epic,” he suggestion.

Vandell, co-founder of Black Swan Capital, supports the global M2 movement to directly affect the price of Bitcoin. He noted that around ten weeks later, the global M2 decline is usually the decline in Bitcoin and cryptocurrency markets.

Despite the potential for short-term decline, Vander believes that this cycle lays the foundation for a long-term uptrend.

“As recently seen, Bitcoin and crypto are following around 10 weeks later when global M2 declines. Despite possible further downsides, this decline is a natural part of the cycle. This liquidity shift may continue throughout the year, laying the foundation for the next leg,” Vandell Explained.

Similarly, another popular analyst, Michaël Vande Poppe, sees the M2 extension as one Five key indicators For early market recovery. He emphasized this Inflation is no longer Main focus and Expectations for U.S. Federal Reserve’s tax cutsfinancial situation is becoming increasingly favorable to Bitcoin.

“The most important thing is: inflation Not the main topic, it is likely to decline. The Federal Reserve cuts prices. The dollar has been greatly weakened. Production decreased. The M2 supply can be significantly expanded. As this process begins, it is only a matter of time until Altcoins and Crypto receive it. Bull,” he statement.

Historical context and predictions

Correlation between The price of Bitcoin Global M2 growth is not new. Macroeconomician Tomas recently compared previous market cycles, especially in 2017 and 2020. At the time, the significant increase in global M2 coincided with Bitcoin’s strongest annual performance.

“The money supply is expanding globally. The last two major global M2 trends occurred in 2017 and 2020, both of which coincide with the mini “Everything Bubbles” and Bitcoin’s strongest years. Can we see duplication in 2025? It depends on whether the dollar is significantly weakening. Observed.

Thomas also emphasized Central Bank Policynoting that while major banks are lowering interest rates, the strength of the dollar may be a limiting factor. in the case of USD Index (DXY) A drop to about 100 or less may result in conditions similar to previous Bitcoin bull runs.

The role of the Federal Reserve

Macro researcher Yimin Xu believes the Fed may stop Quantitative tightening (QT) Policy for the second half of the year. Yimin said such a move could turn Quantitative easing (QE) If economic conditions require it. This shift can inject additional liquidity into the market, exacerbating Bitcoin’s upward trajectory.

“I think the reserve preference for the Fed may become too thin for the second half of the year. I predict that they will terminate QT by the third quarter or the end of the fourth quarter, and may terminate QE,” XU Comment.

Thomas agrees that the Fed’s current plan is to slowly increase its balance sheet, which is related to GDP growth. He also clarified that a major financial activity could trigger a full return on quantitative easing.

These views suggest that uncertainty remains, including the strength of the dollar and the potential economic shock. However, a broader consensus among analysts points to the upcoming bullish phase of Bitcoin.

Investors must conduct their own research as they continue to watch macroeconomic indicators in the coming months and predict whether the predicted rally will be achieved.