Bitcoin $89,294.82 The movements of the price are shaped by technical analysis as well as global liquidity dynamics. In particular, changes in M2 money supply can lead to fluctuations at Bitcoin prices. Experts emphasize that the increase in liquidity is a positive signal for Bitcoin. However, contraction in money supply can put pressure on risky assets. Global economic conditions and policies of central banks can determine Bitcoin’s future price movements.
Global liquidity increase and Bitcoin relationship
The expansionist policies of the central banks lead to growth in M2 money supply. Investors are turning to Bitcoin and similar assets with more risks during high liquidity periods. Historical data show that expanding liquidity supports upward movements for Bitcoin.
The decrease in liquidity has the opposite effect. Contrains in money supply can increase sales pressure in many asset classes, including Bitcoin. In particular, the policies of large economic actors such as the US Federal Reserve (FED) shaping Bitcoin prices by directly affecting the course of global liquidity.
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Bitcoin Magazine Pro draws attention to the importance of global money supply and emphasized the expression “Follow The Money .. Investors are trying to evaluate opportunities in the Bitcoin market by monitoring macroeconomic indicators.
M2 increase, delayed effect and bitcoin
The effect of the change in M2 money supply on Bitcoin is not observed instantly. Research shows that the expansion of money supply is reflected in the price of Bitcoin with a delay of about two months. For this reason, investors focus on analyzing not only the M2 level but also the annual change rate.
In particular, the liquidity expansion experienced at the end of 2024 prepared the ground for the upward movements of Bitcoin for 2025. However, the price from time to time in this process showed consolidation. The re -increasing tendency of liquidity can help Bitcoin see new peaks.
Changes in global money supply in the coming weeks may create mobility in the Bitcoin market. Experts emphasize that investors should determine their strategies not only for price fluctuations but also macroeconomic data.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
