Record-breaking global M2 money supply surges to an all-time high of $55.48 trillion, fueling Bitcoin's potential to reach its $166,000 all-time high target.
In a recent analysis, a renowned macroeconomic analyst has predicted that the price of Bitcoin (BTC) could hit a new all-time high (ATH) of $166,000 by the end of Q3 2022. This prediction is based on the strong correlation between Bitcoin's price and the global M2 money supply, which has reached a new all-time high (ATH) of $55.48 trillion.
The analyst's prediction suggests a potential 30% pump for the price of BTC if it reaches the $166,000 target. This bullish trend for the crypto market could be an indicator of a continued bullish trend for Bitcoin, as the price of BTC often follows the same pump pattern as the global M2 money supply.
The extension of the golden ratio in the global M2 money supply has been a consistent factor in previous bull cycles and the current one, making it a significant factor in the analyst's prediction of the $166,000 BTC ATH target. The analyst believes that the golden ratio extension, which has accurately predicted every major Bitcoin move this cycle, will contribute to reaching this target.
The correlation between Bitcoin's price and the global M2 money supply has been historically strong, with a nearly 89% correlation between Bitcoin's price and global M2 money supply growth over recent years. This suggests that Bitcoin’s price gains have been largely driven by liquidity expansion worldwide.
However, it's important to note that while Bitcoin generally tracks liquidity trends, it does not move perfectly in lockstep. For instance, Bitcoin’s all-time high (ATH) in November 2021 preceded the global M2 peak by several months, indicating Bitcoin may price in monetary conditions ahead of traditional metrics. This suggests Bitcoin can act as a forward-looking macroeconomic indicator influenced by monetary policy shifts and investor sentiment.
While the bullish trend in the global M2 money supply is a significant driver of Bitcoin price increases and has often preceded Bitcoin’s price rallies by a few months, the exact timing and ATH price predictions for Q3 2022 based on this trend alone are uncertain. Some analysts have acknowledged external factors and market volatility that could affect the exact timing and price levels.
With the price of BTC surpassing the $108,000 price target, analysts believe that BTC is done with corrections and dips. However, the timeframe for reaching the $166,000 BTC ATH target is subject to change based on various factors. The $166,000 BTC ATH target is one of the highest predicted price points for BTC in the coming days, but it's important to remember that any predictions are subject to change based on market conditions.
In conclusion, the bullish trend in the global M2 money supply is a significant driver of Bitcoin price increases and has often preceded Bitcoin’s price rallies by a few months. However, timing and exact ATH price predictions for Q3 2022 based on this trend alone are uncertain, with some analysts noting a time lag and occasional divergences between M2 peaks and Bitcoin price peaks. The model supports a bullish outlook but not a precise price forecast for that period.
Investing in cryptocurrency, specifically Bitcoin (BTC), could see a potential 30% increase if the analyst's prediction of $166,000 by the end of Q3 2022 holds true. This bullish trend for Bitcoin is linked to the global M2 money supply, a factor that has shown a historically strong correlation with Bitcoin's price gains.
