Bitcoin Price Could Decrease by 20% if Tied to M2 Money Supply, Analyst Warns

Hey there! Exciting news in the world of Bitcoin – it looks like we might see a drop of around 20% if things keep moving in line with the M2 money supply. Analysts have been tracking this global measure of cash and bank deposits, and so far, the correlation with Bitcoin has been amazingly accurate. According to Joe Consorti, a Bitcoin analyst, there could be a correction coming before Bitcoin hits $100,000. It’s all about following the data and seeing where the support lies for our favorite cryptocurrency.

Historically, the M2 money supply has been linked to previous Bitcoin bull runs. When the M2 money supply increases, it often signals inflation, leading investors to turn to riskier assets like Bitcoin as a form of protection. However, not all experts are in agreement about this forecast. Some believe that Bitcoin’s volatility makes it too difficult to track against anything, while others point out that outside factors, like the strength of the US dollar, could be influencing these trends.

Speaking of the US dollar, some analysts are warning that President-elect Donald Trump’s plans to impose tariffs on imported goods may actually strengthen the dollar. A stronger dollar historically puts pressure on riskier assets like Bitcoin, so it’s something to keep an eye on as things continue to unfold. At the time of writing, Bitcoin was trading just below the $100,000 mark, reaching a peak of $99,571 on November 23rd.

As always, it’s important to remember that this article does not contain any investment advice. Every move in the world of trading and investing comes with risks, so it’s essential to do your own research and make informed decisions. Stay tuned for more updates on the exciting world of Bitcoin!