Swyftx's lead analyst, Pav Hundal, advises caution against going all-in on a short-term correction but remains optimistic about the market's outlook for the upcoming month and beyond.
The expanding M2 global money supply may set the stage for a significant Bitcoin rally, but an analyst warns against going all-in based on this emerging trend.
"This isn't the market to risk your entire portfolio on a short-term correction, but our primary outlook remains positive for March and beyond," said Pav Hundal, lead analyst at the Australian crypto exchange Swyftx, speaking to Cointelegraph.
“It’s not all doom and gloom” Hundal added. "Typically, global easing measures are a strong signal for crypto markets." He noted that data shows active spot buyers, and that the US has increased its debt ceiling by $4 trillion. According to MacroMicro data, the year-on-year fixed exchange rate for the M2 money supply of the four major central banks reached 3.65% in January.
The M2 supply of the four major central banks reached 3.65% in January. Source: MacroMicro
Many crypto analysts point to historical trends where a global M2 money supply rise has led to higher Bitcoin BTC prices, driven by increased liquidity and lower interest rates.
Economist Lyn Alden wrote in a September research report that Bitcoin moves in the direction of global M2 83% of the time.
US money supply surge may “fuel Bitcoin’s parabolic run-up”
Crypto analyst bitcoindata21 said in a Feb. 25 X post, “With weakness in the dollar causing a net positive effect on Global M2, just a matter of time hopefully before Bitcoin realizes.”
Echoing a similar sentiment, crypto analyst Colin Talks Crypto said in an X post that “the Global M2 Money Supply predicts a BIG MOVE is coming for Bitcoin.”
Investment research account Bravo Research said in a Feb. 25 X post that the US money supply had doubled in just 10 years, and “this liquidity surge could fuel Bitcoin’s parabolic run-up.”
It comes as Bitcoin dropped below $90,000 on Feb. 25 for the first time since November after Trump said a day earlier that his planned 25% tariffs on Canada and Mexico “are going forward on time, on schedule.” He had agreed to pause them for 30 days earlier this month.
