Investors are growing concerned about Bitcoin’s recent price drops, with predictions of a 20-25% decline in the global M2 money supply. Currently priced at $92,864, Bitcoin has fallen nearly 9% from its peak of just under $100,000, partly due to long-term holders selling a significant amount. Analysts have noted that Bitcoin typically mirrors M2 trends with about a 70-day delay. This connection suggests that if M2 continues to decline, Bitcoin could drop to critical support levels of $88,000 or even $80,000. Increased selling pressure from long-term holders and a high profit-taking ratio indicate a potentially volatile Market ahead, raising questions about Bitcoin’s future performance.
Investors are feeling nervous as Bitcoin’s price experiences significant fluctuations, particularly with some analysts forecasting a 20-25% decline in the global M2 money supply. Currently, Bitcoin is priced at $92,864, which is nearly 9% less than its recent peak of just under $100,000. This drop is part of a larger trend where long-term holders have sold off 366,000 BTC over the past month, marking the most significant sell-off since April 2024.
Experts have been investigating how Bitcoin prices relate to global M2 money circulation. Notably, crypto analyst Joe Consorti has observed that Bitcoin often mirrors M2 trends, albeit with a delay of about 70 days. If this pattern continues, Bitcoin may face a decline approaching critical support levels of $88,000 or even $80,000.
The situation is exacerbated as Bitcoin struggles to maintain prices above the $94,000 mark. Analysts are closely monitoring these liquidity zones because breaking through them could lead to even steeper declines. As a result, the likelihood of Bitcoin reaching the coveted $100,000 mark by the end of the year has dropped from 92% to 64%.
Recent data from Glassnode shows that long-term holders have been increasingly selling their Bitcoin, with over 507,000 BTC sold since September. This selling activity suggests that many investors are cashing in their profits amidst the current Market instability. Analysts warn that this trend of profit-taking, combined with decreasing liquidity, could lead to further downward pressure on Bitcoin’s price.
Looking ahead, the future of Bitcoin remains uncertain. While some Market observers believe the price may stabilize at lower levels, others caution that more corrections could be in store if global liquidity continues to decline.
Tags: Bitcoin, cryptocurrency news, M2 money supply, price fluctuations, long-term holders, Market analysis, investment trends, crypto outlook
What is the main concern about Bitcoin’s price in the news?
The news talks about worries that Bitcoin’s price could drop by 20% because there may be issues with the M2 money supply.
What does M2 money supply mean?
M2 money supply includes cash, checking, and savings accounts. It shows how much money is available in the economy.
Why would changes in M2 affect Bitcoin?
If the M2 supply decreases or grows too slowly, it can lead to less money flowing into investments like Bitcoin, causing its price to drop.
How much can Bitcoin’s price fall, according to the news?
The news suggests that Bitcoin’s price could fall by 20% due to these M2 supply concerns.
Should I worry about investing in Bitcoin right now?
It’s always good to stay informed and consider risks when investing, especially in a volatile Market like Bitcoin.
