A recent study examining the relationship between Bitcoin’s price fluctuations and the Global M2 money supply has further bolstered the argument for an impending bullish phase for the cryptocurrency. Colin, a well-known crypto analyst on the social media platform X under the moniker “The M2 Guy,” recently provided an update indicating that Bitcoin may be approaching a significant upward move, although the anticipated timeline could further challenge the patience of Bitcoin traders.
Potential Bitcoin Rally May Reflect M2’s Dramatic Growth
Colin, the crypto analyst recognized on X as “The M2 Guy,” continues to strengthen his argument regarding the correlation between Bitcoin and macro liquidity trends. His positive outlook on Bitcoin relies on an inverse correlation between the cryptocurrency’s price movement on the daily candlestick chart and the global M2 money supply.
In a prior analysis, Colin observed that Bitcoin’s price movement on the daily candlestick chart shows the strongest correlations at the 70-day and 107-day offsets. His most recent update emphasizes the 107-day offset, which he identified as “the most likely scenario.”
His examination of Bitcoin’s 107-day offset in relation to the global M2 money supply suggests that Bitcoin is on the brink of a major spike. However, this isn’t anticipated to be a brief one-day surge. Colin believes the rally could extend for two months, given the sharp upward trajectory of the global M2 supply.
As for timing, the 107-day offset indicates that the spike is projected to commence around April 30, based on a robust mathematical correlation. Should the M2 line maintain its upward trend, the rally could persist even longer.
Focus on the Macro, Not Just the Day
While April 30 stands out in his projection, Colin advised followers not to become excessively focused on the specific date. “Don’t get caught up in the weeds,” he cautioned. The broader narrative is critical, as indicated by rising global M2 levels, which are likely to foster an environment conducive for Bitcoin and other crypto assets to thrive from enhanced liquidity.
In terms of price targets, the trajectory of the global M2 money supply suggests a rally that could exceed $140,000. Additionally, intriguing predictions indicate that Bitcoin could potentially double in value before the close of 2025.
As of this writing, Bitcoin is trading at $84,310, having fluctuated between $83,700 and $84,300 over the past 24 hours. Based on this correlation analysis with the global M2 money supply, bullish Bitcoin investors might have to wait at least another month for any substantial movement.
This wait might create hurdles for short-term traders, depending on their positions and risk tolerance. Conversely, it offers long-term holders a chance to acquire more bitcoins at the current lower price ahead of the anticipated rally.
