The recent decline in Bitcoin’s value may soon come to a halt as the year-over-year M2 money supply has turned positive for the first time since November 2022. This is an important signal for investors to start considering investments that protect against inflation.
Crypto analysis firm Glassnode has noted a rise in Bitcoin outflows throughout April, indicating consistent selling pressure. According to CoinMarketCap data, Bitcoin’s price has dropped by 9.75% in the past 30 days and is currently trading at $59,586.
However, there is positive news as the M2 money supply in the United States has turned positive on a year-over-year basis, indicating an overall increase in the circulation of money. This usually prompts investors to shift their focus to assets that perform well during periods of high inflation.
In the past, the Bitcoin and crypto markets have outperformed traditional financial markets when there is an increase in the global M2 money supply. This positive shift in the M2 money supply has led crypto traders to speculate on Bitcoin’s price, as it had been in negative territory since November 2022.
Professional trader Oliver L. Velez expressed his optimism about the positive M2 money supply, stating that it is set to explode. Similarly, crypto trading account InvestAnswers shared the bullish outlook with its followers.
Raoul Pal, a well-known figure in the crypto industry, previously mentioned that he loves the global M2 money supply, as it leads to Bitcoin outperforming other assets. This has been compared to a “Super Massive Black Hole” in the crypto world.
It’s important to note that this article does not provide investment advice. Readers should conduct their own research and assessment of risks before making any investment or trading decisions.