Published: Mar 13, 2025 at 08:25 PM
Updated: Mar 13, 2025 at 02:13 PM
- The price of Bitcoin shows a direct correlation with changes in the M2 money supply since it increases during times of liquidity growth but falls during periods of contraction.
- Bitcoin analysts expect a price increase based on improved global liquidity which would fuel a new uptrend.
- The price trajectory of Bitcoin will remain influenced by interest rates together with regulatory conditions and market sentiment of investors.
Bitcoin’s price appears to be closely following global liquidity trends, as seen in recent data comparing its movement to the Global M2 money supply. A sharp downturn was observed when global liquidity dipped, reinforcing the argument that Bitcoin’s valuation is influenced by macroeconomic factors.
Currently,Bitcoin is trading at $83,357.28 with a 24-hour trading volume of $ 73.59B, market cap of $ 1.65T, and market dominance of 60.50%. The BTC price increased 0.96% in the last 24 hours.
Research shows that Bitcoin price strongly corresponds to Global M2 liquidity supply data representing the total currency circulating through the economic system. Bitcoin shows historically upward price movement when liquidity spreads throughout the market and tends to fall when liquidity contracts. Bitcoin followed a price decline pattern that mirrored global liquidity tightening among recent market data as shown in the most current data visualization.
According to the data Bitcoin maintained steady growth during 2024 when global financial liquidity rose consistently. The decline in Bitcoin market value occurred as liquidity levels decreased leading to a market bottom before its price started to rebound. Bitcoin experienced a critical market dip which precisely matched the M2 liquidity decline period represented by the red zone on the chart.
Market analysts predict Bitcoin will experience its price recovery breakthrough in the second quarter of 2025. Better global liquidity conditions have the potential to help Bitcoin establish upward price growth. The expansion of M2 liquidity throughout history has produced beneficial conditions for cryptocurrencies because it redirected capital flows into high-risk assets.
The rise in liquidity could potentially exceed Bitcoin’s prior peak value according to analytic predictions although outside influences from interest rate adjustments and regulatory conditions need further consideration.
When global funds stay restricted Bitcoin might sustain downward market forces. The market impact of such events depends on both investor outlook and general economic circumstances in the market. Blockchain data demonstrates how Bitcoin’s price performance depends on M2 liquidity trends because the latest market decline occurred when M2 decreased.
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