In a surprising turn of events, the recent Bitcoin sell-off may soon come to a halt as the year-over-year M2 money supply has finally turned positive after a long period of decline. This shift in the M2 money supply is seen by investors as a signal to seek out protection against inflation.
According to crypto analysis firm Glassnode, there has been a noticeable increase in Bitcoin outflows in April, indicating a consistent selling pressure across the market. CoinMarketCap data shows that Bitcoin’s price has dropped by 9.75% over the past 30 days, trading at $59,586 at the time of writing.
However, the M2 money supply in the United States has recently turned positive, indicating an overall increase in the money circulating. This is typically seen as a sign for investors to turn their attention to assets that perform well during periods of high inflation.
In the past, the Bitcoin and crypto markets have shown better performance compared to traditional financial markets when there is an increase in the global M2 supply.
This positive shift in the M2 money supply has sparked speculation among crypto traders about Bitcoin’s price, as the supply had been in negative territory since November 2022.
Professional trader Oliver L. Velez expressed his bullish outlook on Bitcoin, stating that the positive year-over-year M2 Money Supply is a significant development. Other crypto trading accounts, such as InvestAnswers, also shared the sentiment, expecting the money supply to surge and Bitcoin to benefit from it.
Raoul Pal, a well-known figure in the crypto community, had previously stated that he believes Bitcoin outperforms other assets when the global M2 supply is strong.
It is important to note that this article does not provide investment advice or recommendations. It is crucial for readers to conduct their own research and analysis before making any investment decisions.