Crypto traders point to the positive swing in the M2 money supply and see it as a bullish signal for bitcoin.
Bitcoin sell-off over?
The recent bitcoin sales wave will soon decrease in intensity, several analysts think. They point out that the year-on-year M2 money supply is positive for the first time since November 2022. That is a signal that investors use to look for investment options that will help them against inflation.
Crypto analytics firm Glassnode points to an increase in bitcoin “net outflows across all bitcoin holders during April, indicating consistent selling pressure across the board.”
Inspecting the #Bitcoin Accumulation Trend Score by Wallet Cohort, we see a distinct uptick in net outflows across all cohorts throughout April, suggesting a consistent sell-side pressure across the board. pic.twitter.com/LpTcC8TXuh
— glassnode (@glassnode) May 2, 2024
The bitcoin price fell by 10% last month. However, there is some hope. The M2 money supply — an estimate of all cash and short-term bank deposits in this case America — turned positive year-over-year on May 1. That means an overall increase in money in circulation, and usually an indicator for investors to shift their focus to assets that perform well in periods of high inflation.
Historically, the bitcoin and crypto markets have outperformed traditional financial markets as the global M2 supply rises. This leads to further speculation among traders and analysts.
“For the first time, the M2 money supply is positive ‘year-over-year’,” professional trader and financial author Oliver L. Velez explained in a May 2 post on X, giving a very bullish outlook to his 49,800 followers:
M2 Money Supply is about to go ballistic, like it’s never done before. Can you say “Bŕrŕrrrr?”
All I can say is, “buckle-up” and #stackharder. Any and all dips are buyable. Consider them gifts and ignore the bozos calling for doom. We are nowhere near the end of #btc‘s bull. pic.twitter.com/MM81y3rUqA
— Oliver L. Velez ⚡️ 13% Bitcoiner (@olvelez007) May 2, 2024
“M2 money supply ready to explode! Bitcoin… And here… we go,” crypto trading account InvestAnswers told its 204,700 X followers on May 3.
we all know what happens next
M2 Money Supply Set to Explode! 💸#Bitcoin 🚀
“And here …..we…….. go” https://t.co/X3wyogCZaQ— InvestAnswers (@invest_answers) May 3, 2024
Raoul Pal previously stated in October 2023 that he “loves Global M2… this is when BTC outperforms the NDX and crypto becomes the Super Massive Black Hole.”
It really loves Global M2… this is when BTC outperforms the NDX and crypto becomes the Super Massive Black Hole… pic.twitter.com/YliQXmkHnC
— Raoul Pal (@RaoulGMI) October 29, 2023
Source: https://bitcoinmagazine.nl/nieuws/bitcoin-verkoopdruk-neemt-af-m2-geldhoeveelheid-wordt-positief
