google-site-verification=l9c7JrpG7wqxNymxfkdPuCkHTfQpj2iKRGbjnyOvt_k
“Bitcoin About to Skyrocket Because the World Is Flooded with Money?”
Global M2 money supply just hit a record $108.4 trillion, leaving many wondering: Where will Bitcoin go?
What is M2? It is a measure of the amount of money in a country or region, including cash, bank deposits, and assets that are easily converted into money. When M2 increases, there is more money in the financial system, and this money often flows into risky assets such as stocks , real estate, or even Bitcoin.
History shows that whenever M2 increases sharply, Bitcoin often has impressive price increases. For example, after the COVID-19 economic stimulus packages, M2 in the US increased by more than 25%, pushing Bitcoin from below $10,000 in mid-2020 to a peak of $69,000 in November 2021.
Now, with M2 accelerating since late February and hitting a new high, experts predict Bitcoin could break out in Q2, although it typically lags about two months behind M2's rally.
But not everything is going smoothly. President Trump ’s “Liberation Day” tariffs and China’s retaliation are roiling global markets, sending Wall Street to its biggest drop in five years.
Inflationary pressures, the US debt ceiling issue, and economic uncertainties may make investors cautious, delaying putting money into Bitcoin.
Maksym Sakharov , co-founder of WeFi Deobank, commented that Trump's tariffs are mainly a negotiating tactic, but the actual impact is still in question.
Still, with Bitcoin supply capped and M2 continuing to expand, the upside outlook remains bright if the market regains confidence.
Over the past two weeks, despite the volatility, the average Bitcoin price has remained almost unchanged, indicating that it has not entered a downtrend.