Storm Ahead? Bitcoin Price Could Tumble 20% Due To M2 Supply Concerns ⚡

Bitcoin's price is facing potential declines, as analysts predict the global M2 money supply could decrease by 20-25%. This concern affects Bitcoin movements, which has already dropped 9% from its recent highs.

Research shows Bitcoin prices historically follow M2 circulation patterns with a 70-day delay. A further decrease in M2 could push Bitcoin towards significant support levels at $88,000 or even $80,000.

Increasing selling pressure from long-term holders, who have liquidated significant amounts of Bitcoin, is heightening market volatility and contributing to decreased liquidity.

The ongoing trend of profit-taking suggests a shift in market sentiment, and analysts remain on edge about the possibility of further price corrections if global liquidity continues to decline.

To further complicate predictions, Bitcoin's realized P/L ratio has reached historical highs, pointing to an overheated market amid shifting probabilities of Bitcoin meeting the year-end $100,000 target.