Bitcoin Rally Incoming? M2 Money Supply Rebound Signals Big Moves Ahead

Source Bitcoinist

As Bitcoin (BTC) continues to trade in the low $80,000 range, a key macroeconomic development promises to benefit the leading cryptocurrency. If historical patterns hold true, then BTC may not be too far from another massive price rally.

Rise In M2 Money Supply To Benefit Bitcoin?

According to an X post by crypto analyst Master of Crypto, a rebound in global M2 money supply holds the potential to reignite BTC’s bullish momentum. The analyst explained that M2 – a leading indicator – often predicts significant shifts in Bitcoin’s price trajectory.

For the uninitiated, M2 money supply is a measure of the total money circulating in an economy, including cash, checking deposits, savings accounts, and other liquid assets. It’s a key indicator of liquidity, influencing inflation, economic growth, and financial markets, including emerging assets like Bitcoin.

MoC

Master of Crypto noted that historically, M2 movements tend to predict BTC’s price momentum with a 70-day lag. The analyst added:

Recently, as M2 began to rebound before BTC, it’s now fully recovered and poised to hit new peaks suggesting BTC might do the same. Analysts have insights on why this upcoming BTC rally could surpass all previous ones.

Fellow analyst James echoed these views, highlighting that BTC may experience another price rally after a brief period of dip and consolidation.

Crypto analyst The M2 Guy provided further insight, suggesting that if the 70-day lag holds, BTC’s next rally could start around March 24. He added that an alternative scenario – based on a 107-day lag – points to April 30 as the potential breakout date.

m2 guy

Technicals Point Toward BTC Take-Off

Crypto trader Merlijn The Trader identified a possible breakout from a falling wedge pattern – a historically bullish formation for Bitcoin. On average, BTC has delivered 66% returns following a breakout from this pattern on the three-day chart. A similar move now could propel BTC to new all-time highs (ATH).

MERLIJN

Moreover, Merlijn noted that BTC is also tracking a megaphone pattern. However, he cautioned that Bitcoin must hold above $72,000 for this bullish structure to remain intact.

Crypto expert Burak Kesmeci pointed out that a recovery in the U.S. stock market may be crucial for Bitcoin’s next surge. He emphasized the strong correlation between cryptocurrencies and traditional equities, suggesting BTC could struggle if stocks remain weak.

Meanwhile, well-known American gold advocate Peter Schiff issued a bearish warning. He argued that BTC isn’t out of the woods yet – predicting a potential “catastrophic drop” if the NASDAQ enters a bear market. At press time, BTC trades at $83,826, down 1.7% in the past 24 hours.

bitcoin
Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
What Crypto Whales are Buying For May 2025Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
Author  Beincrypto
Apr 21, Mon
Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
placeholder
Gold Price Forecast: XAU/USD attracts some sellers below $3,250 on firmer US DollarThe Gold price (XAU/USD) extends the decline to around $3,245 during the early Asian session on Thursday. The precious metal edges lower to near a two-week low amid easing US-China trade tensions and stronger US Dollar (USD) demand. 
Author  FXStreet
May 01, Thu
The Gold price (XAU/USD) extends the decline to around $3,245 during the early Asian session on Thursday. The precious metal edges lower to near a two-week low amid easing US-China trade tensions and stronger US Dollar (USD) demand. 
placeholder
Ripple Price Prediction: XRP signals breakout as spot ETF prospects brightenRipple (XRP) price remains firmly supported at $2.20, while trading at $2.22 at the time of writing on Friday.
Author  FXStreet
19 hours ago
Ripple (XRP) price remains firmly supported at $2.20, while trading at $2.22 at the time of writing on Friday.
placeholder
Gold looks set for weekly loss as news of trade talks curb haven demandGold (XAU/USD) trades around $3,250 on Friday,  recovering slightly from two-week lows after three straight days of losses. The losing streak that took place this week was the sum of a whole package of headlines that all had one theme in common: easing on tariffs. 
Author  FXStreet
19 hours ago
Gold (XAU/USD) trades around $3,250 on Friday,  recovering slightly from two-week lows after three straight days of losses. The losing streak that took place this week was the sum of a whole package of headlines that all had one theme in common: easing on tariffs. 
placeholder
Could XRP ETF Approval Be Near? Ripple To Meet SEC Chair Paul Atkins On May 2As positive shifts in cryptocurrency regulation unfold under President Donald Trump’s second administration, speculation is mounting regarding the potential approval of spot XRP ETF applications. 
Author  Bitcoinist
18 hours ago
As positive shifts in cryptocurrency regulation unfold under President Donald Trump’s second administration, speculation is mounting regarding the potential approval of spot XRP ETF applications. 
goTop
quote