Bitcoin's price action faces scrutiny due to its correlation with the global M2 money supply. A potential 20-25% correction is suggested as M2 liquidity contracts.
Joe Consorti of Bitcoin custody firm Theya notes Bitcoin's 70-day lag in tracking M2 trends since September 2023, sparking concerns of a significant pullback.
The relationship between Bitcoin's price and M2 expansion reflects broader economic conditions, with risk assets typically correlating with liquidity increases.
Analysts point to historical patterns and propose long-term investment strategies amidst possible volatility from macroeconomic factors and M2 liquidity dynamics.
Источник: beincrypto.com ↗