Cryptocurrency Market News: Analyst Critiques Global M2 Data for Bitcoin Predictions
Is Global M2 Data a Reliable Predictor for Bitcoin Price Movements?
A financial analyst has publicly criticized the use of global M2 money supply data to predict Bitcoin (BTC) price movements, calling such analyses mathematically unsound and misleading. The criticism comes amid a surge in the global M2 money supply to an all-time high. Several analysts are forecasting similar trends for BTC.
Bitcoin and Global M2 Correlation
TXMCtrades, the analyst, shared his thoughts on X (formerly Twitter). He specifically pointed to a chart by macro investor Raoul Pal that compared Bitcoin’s price to global M2. TXMCtrades argued that charting global M2 daily or weekly is fundamentally flawed due to the inconsistent update frequencies of the underlying data. According to him, doing so distorts the information by amplifying short-term fluctuations instead of providing an accurate, long-term trend.
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