Bitcoin Price Deviates From Global M2 Money Supply, Analyst Addresses Concerns
Crypto analyst Colin highlighted a deviation in Bitcoin price from the Global M2 money supply, suggesting concerns that the bull run may be over. He noted this deviation is typically short-term and does not invalidate the overall trend.
Key Points on Bitcoin's Deviation
- Deviation from M2 money supply similar to February 2025 position.
- Short-term non-correlation happens 20% of the time.
- The M2 is directionally predictive for BTC with about 80% accuracy.
- No specific BTC price predicted by M2; it indicates market direction.
- Colin suggests the bull run is not over and cycle top is not yet reached.
Market Insights
- Raoul Pal stated correlation with money supply minimizes concern over current price action.
- 89% of BTC price action explained by global liquidity implies news and narratives are often noise.
- Geopolitical risks, such as the Israel-Iran conflict, likely to have minimal impact on Bitcoin prices.
- Institutional accumulation continues with firms like Strategy and Metaplanet buying the dip.
- Positive flows recorded in Bitcoin ETFs.
Current Bitcoin trading price is approximately $104,700, reflecting a decline over the last 24 hours.
