By Chris Hollingworth 
Bitcoin’s recent price movements have sparked discussions among market analysts regarding the potential correlation between BTC price action and the M2 money supply. Some experts suggest that a similar pattern to the late 2020 bull run may be emerging.
The price of Bitcoin has been closely watched by investors and traders, with many looking for clues to predict future movements. The M2 money supply, which includes cash, checking deposits, and other highly liquid assets, is often considered a key economic indicator.
In late 2020, Bitcoin experienced a significant price surge, reaching new all-time highs. During this period, there was speculation that the increase in the M2 money supply by central banks around the world played a role in driving the price of Bitcoin higher.
Analysts are now observing a potential correlation between Bitcoin’s price action and the M2 money supply once again. If this correlation continues to hold, some believe that Bitcoin could be poised for another bull run similar to what was seen in late 2020.
It is important for investors to carefully monitor both Bitcoin price movements and macroeconomic factors such as the M2 money supply to gauge potential market trends. While historical patterns can provide insights, the cryptocurrency market is known for its volatility and unpredictability, making it essential for investors to conduct thorough research and exercise caution in their decision-making process.
