Author: Ciaran Lyons, CoinTelegraph; Translated by: Tao Zhu, Golden Finance
Global M2 The growing supply of money may trigger a sharp rise in Bitcoin, but analysts warn not to place all bets on new appearances on the signal.
Pav Hundal, chief analyst at Australian cryptocurrency exchange Swyftx, noted: “This is not a market that bets all its funds on a quick adjustment, but our core forecast remains strong in March and beyond. ”
”Not all doom and pessimism”“In normal times, global easing measures are a fairly reliable leading indicator of cryptocurrencies,” Hundal said. “The data we have shown that spot buyers are currently active and the U.S. has raised its debt ceiling by $4 trillion.”
“It’s not all about doom and pessimism,” he added. According to MacroMicro data, the four major central banks' M2 money supply reached a fixed exchange rate of 3.65% year-on-year in January.
The supply of M2 in the four major central banks reached 3.65% in January. Source: MacroMicro
Many cryptocurrency analysts point out that historical trends show that the increase in global M2 money supply has led to higher Bitcoin prices due to increased liquidity and lower interest rates.
Economist Lyn Alden wrote in a September research note that Bitcoin moves 83% of the time toward the global M2.
The surge in U.S. money supply could “foster a parabolic rise in Bitcoin”Crypto analyst bitcoindata21 said in a February 25 X post, “The weakness in the dollar has had a net positive impact on global M2, hopefully It’s only a matter of time before Bitcoin achieves this goal.”
Crypto analyst Colin Talks Crypto expressed a similar view in X’s post, saying, “The global M2 money supply predicts that Bitcoin will usher in a major volatility. ”
Investment Research Account Bravo Research said in a February 25 X post that the U.S. money supply is just 10 Doubled this year, "this surge in liquidity could fuel a parabolic rise in Bitcoin."
The day after Trump said he planned to impose a 25% tariff on Canada and Mexico "is On time, on schedule” Bitcoin fell below $90,000 on February 25, the first time since November. Earlier this month, he had agreed to suspend the collection for 30 days.