Cryptocurrencies

Will Bitcoin selling pressure ease? The money supply M2 turns positive

Will Bitcoin selling pressure ease? The money supply M2 turns positive recent sell-off could soon slow as M2 money supply turns positive on an annual basis for the first time since November 2022 – a signal investors are using to start looking for hedges against inflation.

Will Bitcoin Selling Pressure Ease? The Money Supply M2 Turns Positive
Will Bitcoin Selling Pressure Ease? The Money Supply M2 Turns Positive

Cryptocurrency analysis firm Glassnode noted a slight rise in “net Bitcoin outflows across all groups throughout April, indicating consistent sell-side pressure across the board,” in a May 2 post on X.

Besides, the price of Bitcoin has fallen by 9.75% over the past 30 days, and is currently trading at $59,586, according to CoinMarketCap data.

Will Bitcoin selling pressure ease? The money supply M2 turns positive

However, the M2 money supply – an estimate of all the cash held and short-term bank deposits across the country – turned positive on May 1 year-over-year, meaning an overall increase in money in circulation, usually an indicator of investors shifting. Its focus is on assets that outperform in periods of high inflation.

Historically, Bitcoin and cryptocurrency markets have begun to outperform traditional financial markets as the global supply of M2 rises.

The positive shift in the M2 money supply has prompted cryptocurrency traders to speculate on the price of Bitcoin, as the supply has been in negative territory since November 2022.

Will Bitcoin Selling Pressure Ease? The Money Supply M2 Turns Positive

“For the first time, M2 money supply is positive ‘on an annual basis,’” explained professional trader and financial author Oliver L. Phillies on May 2.  Posted  on X, offering a very bullish outlook to his 49,800 followers:

“All I can say is ‘buckle up’ and ‘  stack harder. ‘ Any and all dips are buyable. Consider them gifts and ignore the bozos who invite doom. “We are nowhere near the end of Bitcoin’s rise.”

Related:  Bitcoin Price Correction “Very Common” If Price Continues to Drop at $56K – Peter Brandt

“M2 money supply is set to explode! “Bitcoin…and here we are…going,” cryptocurrency trading account InvestAnswers told its 204,700 followers on May 3.

Raoul Pal previously stated in October 2023 that he “likes Global M2… that’s when BTC overtakes NDX and crypto becomes a massive black hole.”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

 

 

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