The global M2 Money offer rose to the highest level at all times, amounting to $ 108.4 trillion, which raised new questions about the next step for Bitcoin.
This landmark comes amid the economic uncertainty that is escalating in the wake of the new “Tahrir Day” tariff for President Donald Trump and the rapid reprisals in China, which brought together global markets.
What is M2 and why is Bitcoin?
Despite the severe volatility over the past two weeks, the average bitcoin value has been almost unchanged.
Analysts claim that the latest bitcoin fluctuations reflect the macroeconomic fears and volatility long/short – but the largest encrypted currency is not in a place near the bear market.
This is largely due to the historical relationship between the high levels of M2 and large Bitcoin.
M2 is a wide scale for width of money in a country or the region. Physical criticism, audit and savings deposits, and other liquid assets that can be quickly converted into criticism.
When the M2 increases, it usually indicates more liquidity in the financial system. This simply means more money that often seeks returns in the most dangerous assets such as stocks, real estate or cryptocurrencies such as bitcoin.
The previous increases in M2 M2 M2 Bitcoin gatherings have preceded. After stimulus in the Covid era in 2020-2021, the American M2 supplies jumped more than 25 %.
This is associated with Bitcoin’s height of less than $ 10,000 in mid -2012 to the highest level of more than $ 69,000 by November 2021. Analysts indicate a similar pattern today, albeit with delay.
“The market supporters say that Trump’s tariff is primarily a negotiating strategy, and its impact on companies and consumers will be managed. In addition to uncertainty is the inflationary pressures that can challenge expectations in the United States for the Federal Reserve to meet that these restricted assessments are that this beautiful remains a embodied number scheduled. WEFI Deobank: “Analysts did not expect to run out after the first quarter.”
Also, the price of Bitcoin often tracks the global M2 growth for about two months.
With the acceleration of M2 since late February and the current rise that transports it to its highest levels, market observers indicate that bitcoin can see late but strong up if liquidity continues to expand.
However, the opposite winds of the total economy can reduce gains in the short term. Trump’s introductory shock and Chinese response to losses led to the most severe Wall Street losses in five years.
Investors may delay the allocation of capital for high -transformation assets until commercial tensions stabilize.
However, with the height of the M2 and the supply of Bitcoin, the preparation remains for a renewed bullish movement in its place. This is if the historical patterns carry and restore the markets.
Disintegration
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