Bitcoin’s Correlation with M2: Will $21.9 Trillion in Liquidity Drive Prices Above $130,000?

A recent surge in US money supply, hitting a record high of $21.9 trillion, has raised the question of whether this increase will propel Bitcoin’s price above $130,000. Analysts are closely watching the correlation between these two factors as they suggest potential upward trends for Bitcoin. 90 days after substantial increases in money supply, there is an observed tendency for Bitcoin to experience upward movement. This trend aligns with experts predicting a surge to $130,000- $170,000 for Bitcoin. The current trading price of Bitcoin hovers around $111,000 to $112,500, reflecting cautious optimism. While the correlation is strong, it’s not a guarantee. Regulatory adjustments and inflation risks could potentially disrupt this pattern. The M2 data provides one of the clearest indicators of where Bitcoin might head next. This connection between Money Supply and Bitcoin has sparked debate among investors and crypto analysts alike. 130,000 to 170,000 USD is within reach based on expert projections. It’s important for investors to consider this data alongside other factors before making any investment decisions. This article delves deeper into the dynamic relationship between Bitcoin and M2 money supply and its implications for investors.