The M2 money supply includes cash, checking deposits, and other liquid assets. Historically, Bitcoin’s price often rises when M2 expands, as more liquidity pushes investors toward alternative assets like crypto.
Colin Talks Crypto, a popular analyst on X (Twitter), pointed to a sharp increase in global M2. He described the jump as a “vertical line” on the chart, signaling an upcoming surge in asset prices. He believes the rally will benefit stocks, Bitcoin, and the wider crypto market.
Vandell, co-founder of Black Swan Capitalist, agrees that global M2 directly impacts Bitcoin. He notes that market downturns often follow M2 declines by about ten weeks. Despite short-term dips, Vandell expects this cycle to fuel long-term growth.
Michaël van de Poppe, another well-known analyst, also views M2 expansion as a key indicator of market recovery. He highlights that easing inflation and possible US Federal Reserve rate cuts are creating better conditions for Bitcoin.
Historical trends support these predictions. Past market cycles in 2017 and 2020 saw Bitcoin’s strongest performances alongside rising M2 levels. If the US dollar weakens further, similar conditions could spark a new bull run.
