Analyst Predicts Bitcoin Could Reach $400,000 with Growing M2 Supply
Bitcoin is currently trading between $108,000 and $110,000, following a brief dip in the last 24 hours. This range has remained stable despite volatility since January and April.
Lagging Money Supply Signal
- Analyst Kyle Chassé indicates Bitcoin’s price follows global M2 money supply with a 90-day lag.
- Daily closes on Bitstamp were compared to shifted world M2 data, showing that rising liquidity typically results in Bitcoin price increases after three months.
Short-Term Price Moves
- Bitcoin peaked above $109,000 in January and fell below $75,000 in early April.
- It has since recovered toward $110,000, suggesting a pause rather than the end of an upward cycle.
Growing Money Figures
- Global M2 was approximately $98 trillion in early 2023, rising to over $108 trillion by early 2024.
- Recent figures show M2 surpassing $111 trillion, indicating potential upside for Bitcoin into mid-2025 as liquidity remains strong.
Bitcoin is coded to $400K. pic.twitter.com/6BbogYw1UX
— Kyle Chassé / DD (@kyle_chasse) May 27, 2025
Bullish Price Targets
- Chassé projects Bitcoin could reach $400,000 if global M2 continues to grow, indicating a potential 270% increase from current levels.
- Other factors like real interest rates and policy changes can impact Bitcoin's movement, potentially offsetting M2 growth effects.
What Comes Next
- Global M2 leads Bitcoin price movements by about 12 weeks.
- If M2 growth slows, Bitcoin may stabilize or correct; fresh liquidity could trigger new highs.
- The relationship between money supply and Bitcoin offers insights but does not dictate precise trading actions.