Global liquidity, which is among the macroeconomic indicators, has long been financial markets and especially Bitcoin 
$108,246.30 It is used as one of the main indicators in understanding price movements. Increasing liquidity increases the amount of capital towards risky assets, while new criteria that react faster to the Bitcoin ecosystem in existing market conditions are also prominent.
Global M2 and Bitcoin Relationship
The effect of global M2 on Bitcoin prices is one of the most frequently analyzed issues in recent years. M2; circulating cash and quickly translated into money. M2 movements in large economies are directly associated with factors such as incentive policies and money printing implemented by central banks.
Looking at the past data, it is observed that the major increase in the supply of M2 with the incentive moves in 2020 coincides with the same period as serious rise in Bitcoin. Similarly, the growth in 2016-2017 period and 2018-2019 and 2022 M2 contraction with Bitcoin prices are reported.
Strong correlation and timing factor
Considering the rate of change of M2 on the basis of the year (Year-on-Year), a stronger correlation occurs with Bitcoin prices. Considering that governments in general increase the money supply, the speed and slowing of this increase shows a clearer connection with Bitcoin’s up or downward movements.
However, there is a certain delay when updating M2 data. In the first place, the increase in liquidity is said to affect the timing because it turns to classical assets, then to stocks, and finally to more volatil and risky assets.
Stablecoins: faster and more sensitive indicators
In spite of the slow update of M2 data, another indicator that shows a closer and closer relationship with Bitcoin prices is the change in the stablecoin supply. The supply increase or decreases in large stablecoins such as USDT, USDC, DAI can be an important signal for short -term movements in Bitcoin prices.
In particular, the 28 -day change of stablecoin supply reflects short -term liquidity trends precisely. When this ratio is positive, it usually points to the stages of Bitcoin accumulation and rise; Negative movements are parallel to market summits and retreats.
The increase in the stablecoin supply increase in late 2024 coincided with Bitcoin’s climbing to new peaks. Likewise, before the serious decline this year, the return to the negative of the stablecoin growth rate was monitored. In the current data, the recovery in the stablecoin supply has the potential to give clues to a new rise in Bitcoin.
According to the article author: “Global M2 growth is compatible with long -term Bitcoin trends, but the stablecoin exchange rate indicator offers clearer information for the location of the loop.”
Now, such data is much more sensitive and real -time monitored than the past. It is stated that the increase in stablecoin supply can closely monitor Bitcoin prices with both daily and cycle movements. It is emphasized that remarkable results can be achieved with low -cost strategies such as monitoring positive change and reducing positions in extreme rise.
Recent research reveals that global M2 offers long -term perspective, but is a practical and effective indicator in terms of stablecoins to capture rapid liquidity changes instantly. Regularly tracking stablecoin exchange to readers may provide advantages in market timing. Only based on these data, it is considered important that extensive analyzes are made before the investment decision is made.
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.
