A Real Vision analyst said that there is a correlation between the dynamics of bitcoin and the total amount of circulating currencies in the world. He pointed out that this means positive M2 growth should be achieved in order to create a proper environment for capital growth and momentum in the bitcoin market.<\/p>\n
On a recent episode of Real Vision, the analyst pointed out the evident correlation between bitcoin market capitalization cycles and cycles in the monetary supply (M2). Historical data shows that not only do the highest and lowest points of bitcoin prices align with increases and decreases in M2 supply, but these cycles also reflect currency expansion and inflation, which greatly influence bitcoin’s value.<\/p>\n
According to the analyst, he is referring to the middle of 2022, during which there was a spike in the level of M2 around the globe, coinciding with a temporary pause in bitcoin price volatility. Later in the second half of 2022, another influx of M2 occurred at the same time as bitcoin’s price was experiencing a consolidation phase.<\/p>\n
Looking ahead, the Real Vision analyst insisted that the global money supply needs to increase significantly to create favorable conditions for the price of bitcoin. If the situation is not favorable, it is difficult for bitcoin to return to its previous levels of growth. Therefore, the analyst points out the importance of closely monitoring M2 (money supply) data.<\/p>\n
Source \u2014 Real Vision: https:\/\/www.youtube.com\/watch?v=kYPcSWy2ABI<\/a><\/em><\/p>\n <\/p>\n