- Bitcoin’s correlation with world M2 money supply is high, implying a future spurt of investments in risk assets within 108 days.
- M2 money supply hit a record high, with hopes for added liquidity to drive Bitcoin’s price higher in the weeks to come.
- Market experts emphasize restraint, warning against responding to temporary volatility while tracking long-run macroeconomic trends.
The relationship between Bitcoin and the global M2 money supply continues to draw attention as macroeconomic indicators remain favorable for risk assets. Bitcoin is entering a period where market participants anticipate price movements aligning closely with macro liquidity trends.
Global M2 Reaches All-Time High and Maintains Momentum
Global M2 money supply has stayed at an all-time high for three consecutive days, indicating continued expansion in monetary liquidity worldwide. According to market observer Colin Talks Crypto, this sustained peak signals what may be incoming capital inflows into risk assets like Bitcoin within approximately 108 days.
He noted that a delayed correlation often emerges between M2 growth and asset price action. Based on historical performance, Bitcoin could see a more pronounced upward move within the next two to three weeks. The macro chart shows a gradual decline into mid-April, with potential for another dip before the expected upward momentum resumes.
Despite short-term fluctuations, Colin emphasized that the Global M2 is a macro-level metric and should be viewed accordingly. He warned against reacting to brief price changes and advised focusing on broader trends, noting a 20% deviation zone that often misleads short-term traders.
Patience Encouraged Amid Short-Term Fluctuations
Colin Talks Crypto referenced past criticism of the 108-day M2 offset correlation, pointing out that a recent “mini rally that fails” reinforced its validity. He urged market participants not to abandon established macro patterns based on temporary moves. The data continues to support the time-offset model, which has shown consistent results over an extended period.
He also addressed the tendency for some traders to flip their positions too quickly. This behavior, he explained, often stems from misinterpreting short-term price movements rather than relying on proven macroeconomic data. Colin concluded that any necessary adjustments to the offset should be based on consistent evidence, not brief periods of volatility.
Expansion Policies and Future Growth Expectations
Echoing this macroeconomic view, Crypto Rand stated that the correlation between global M2 and Bitcoin remains exceptionally strong. He highlighted that expansionary monetary policies have returned globally, with virtually no exceptions.
Crypto Rand also pointed to projections showing M2 could rise from the current $108 trillion to $127 trillion. Such growth, if realized, would further support the idea that Bitcoin could benefit from increased global liquidity. These expectations align with the broader market’s anticipation of capital flows toward decentralized assets in the coming months.
