The recent decline in Bitcoin’s value may soon slow down as the M2 money supply has turned positive for the first time since November 2022. This is seen as a signal for investors to seek investments that can protect against inflation.
Crypto analysis firm Glassnode has noted a consistent sell-off of Bitcoin throughout April, indicating a downward pressure on the cryptocurrency. According to CoinMarketCap data, Bitcoin’s price has dropped by 9.75% in the past 30 days and currently trades at $59,586.
However, on May 1, the M2 money supply in the United States turned positive on a year-over-year basis, indicating an overall increase in the money in circulation. This typically prompts investors to focus on 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 supply. The 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 and financial author Oliver L. Velez expressed a bullish outlook for Bitcoin in light of the positive M2 money supply. Similarly, crypto trading account InvestAnswers shared its optimism with its followers, stating that the M2 money supply is set to explode.
Investor Raoul Pal has previously highlighted the significance of the M2 money supply, stating that it is a time when Bitcoin outperforms other assets.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment decisions.