Bitcoin has recently stabilized in the $80,000 range, reducing the risk of a drop below $70,000 while hinting at a potential upward surge past $90,000. According to crypto analyst Colin ("The M2 Guy"), Bitcoin's price action against the global M2 money supply signals a significant move in the coming months. Here’s a breakdown of the key scenarios and targets.
The Link Between Bitcoin and Global M2 Money Supply
The global M2 money supply—a measure of liquid money circulating in the economy—often influences capital flows into risk assets like Bitcoin. Colin’s analysis highlights two historical offsets with strong correlations to BTC’s price:
- 70-day offset (early surge scenario)
- 107-day offset (delayed but stronger rally scenario)
Scenario 1: March Liquidity Shift
- Timing: March 24 (70-day offset)
- Price Target: ~$122,000 by June
- Catalyst: Early liquidity influx from global markets
Scenario 2: April Liquidity Shift
- Timing: April 30 (107-day offset)
- Price Target: ~$130,000 by July
- Catalyst: Historically accurate, potentially more powerful rally
Why This Matters
- Liquidity-Driven Rally: Both scenarios suggest a surge in Bitcoin’s price due to increased capital flow.
- Key Levels: Breaking $100,000 could propel BTC to new all-time highs, with $120,000–$130,000 as intermediate targets.
- Current Status: Bitcoin trades at $85,850 (+3% in 24h), showing signs of accumulation.
👉 Why Bitcoin’s liquidity correlation matters for long-term holders
FAQs
Q1: What is the global M2 money supply?
A: It’s the total liquid money (cash + savings deposits) circulating worldwide, influencing capital allocation to assets like Bitcoin.
Q2: How reliable are these price targets?
A: Based on historical offsets, but market sentiment and macro factors (e.g., Fed policy) may alter trajectories.
Q3: Should investors prepare for volatility?
A: Yes. Liquidity shifts often precede sharp price movements—both upward and downward.
Q4: What’s the best strategy for these scenarios?
A: Dollar-cost averaging (DCA) and monitoring liquidity indicators (like M2 growth) can mitigate timing risks.
Final Thoughts
While Colin’s analysis doesn’t guarantee outcomes, the M2-Bitcoin correlation provides a framework for anticipating major moves. Whether March or April sparks the rally, the key takeaway is clear: liquidity inflows could drive Bitcoin to six-figure valuations in 2024.
👉 How to track Bitcoin’s liquidity trends for smarter trading
Note: Targets are projections, not financial advice. Always conduct independent research.
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