{"id":24244,"date":"2024-11-28T14:30:30","date_gmt":"2024-11-28T14:30:30","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=24244"},"modified":"2024-11-28T14:30:30","modified_gmt":"2024-11-28T14:30:30","slug":"storm-ahead-bitcoin-price-could-tumble-20-due-to-m2-supply-concerns","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=24244","title":{"rendered":"Storm Ahead? Bitcoin Price Could Tumble 20% Due To M2 Supply Concerns"},"content":{"rendered":"

Investors have expressed apprehension regarding the recent price fluctuations of Bitcoin, particularly in light of analysts\u2019 predictions of a 20-25% decline in the global M2 money supply.<\/p>\n

At $92,864, bitcoin is down nearly 9% from its recent high of just under $100,000. That fall is part of a trend of profit-taking by long-term holders, who sold 366,000 BTC in the last month, the most since April 2024.<\/p>\n

Introduction To The M2 Money Supply Connection<\/strong><\/h2>\n

Market researchers have been studying the relationship between Bitcoin prices and global M2 money circulation.<\/a> Crypto analyst Joe Consorti noted that Bitcoin prices have regularly tracked M2 pricing, albeit 70 days later.<\/p>\n

Bitcoin has tracked global M2 with a ~70-day lag since September 2023.<\/p>\n

I don\u2019t want to alarm anyone, but if it continues, bitcoin could be in for a 20-25% correction.<\/p>\n

Global M2 in
\nBitcoin in pic.twitter.com\/PlPoaHUoFR<\/a><\/p>\n

\u2014 Joe Consorti (@JoeConsorti) November 25, 2024<\/a><\/p>\n

That is, Bitcoin\u2019s price<\/a> is likely to follow the trend of M2 going down in the near future. The latest drop in M2 shows that Bitcoin might fall to important support levels of $88,000 or even $80,000 if things keep going the way they are.<\/p>\n

UPDATE: One day after my last chart, bitcoin is now $5,000 lower, following the path set by global M2 several weeks ago very closely.<\/p>\n

So far, this correlation is shockingly accurate.<\/p>\n

We\u2019ll have to see if BTC follows it all the way down, or stops short & finds support.<\/p>\n

pic.twitter.com\/oEGOuYYRio<\/a><\/p>\n

\u2014 Joe Consorti (@JoeConsorti) November 26, 2024<\/a><\/p>\n

Bitcoin has been weakening as it can\u2019t stay over $94,000. Because breaking these liquidity zones could cause greater declines, analysts are watching them attentively. Investors are worried because Bitcoin\u2019s chance of reaching $100,000 by year\u2019s end has plummeted from 92% to 64%.<\/p>\n\n

Long-Term Holders\u2019 Pressure To Sell<\/strong><\/h2>\n

Glassnode\u2019s most recent data indicates that long-term holders (LTHs) have been more active in selling<\/a>, with over 507,000 BTC distributed since September 2023. This selling pressure is substantial and indicates that numerous investors are liquidating their profits in the context of the current market volatility.<\/p>\n

The potential shift in market sentiment, which is suggested by the increased activity among LTHs, could further exacerbate the downward pressure on Bitcoin\u2019s price.<\/p>\n

Additionally, the Realized Profit\/Loss (P\/L) ratio has reached new historical highs, indicating an overheated market. An increase in this ratio typically means that a sizable portion of investors are benefiting from price increases. Analysts caution that Bitcoin\u2019s rising momentum may be waning due to the current trend of profit-taking and decreasing liquidity.<\/p>\n

Bitcoin Future Outlook \u2013 What Is In Store?<\/strong><\/p>\n

As it works its way through these challenges, the future of Bitcoin is still quite foggy. Despite the fact that there are market observers who believe that the price of the top crypto can normalize at lower levels, there are also analysts who warn that additional corrections might be required if global liquidity continues to decrease.<\/p>\n

Featured image from DALL-E, chart from TradingView<\/em><\/p>","protected":false},"excerpt":{"rendered":"

Investors have expressed apprehension regarding the recent price fluctuations of Bitcoin, particularly in light of analysts\u2019 predictions of a 20-25% decline in the global M2 money supply. At $92,864, bitcoin is down nearly 9% from its recent high of just under $100,000. That fall is part of a trend of profit-taking by long-term holders, who […]<\/p>\n","protected":false},"author":0,"featured_media":24245,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-24244","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/24244"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=24244"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/24244\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/24245"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24244"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24244"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24244"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}