Bitcoin’s Hot Run: Will BTC Correct to $20,000?
Sunday, 22 December 2024, 11:32
Understanding Bitcoin's Price Dynamics
Bitcoin's (BTC) price movement has shown a notable correlation with the global money supply (M2), which could indicate a possible and significant correction for the cryptocurrency. The analysis suggests that BTC could plunge almost 80% to $20,000 as it seeks to breach the six-figure valuation mark.
Causal Factors in Bitcoin Valuation
- Historical trends indicate a lagged correlation of approximately 10 weeks between BTC prices and M2.
- The M2 supply peaked at $108.5 trillion in October before experiencing a notable decline.
- Bitcoin's price may face pressures below $90,000 amid tightening liquidity.
The Future of Bitcoin and M2
- There are projections of M2 exceeding $127 trillion by 2025, hinting at potential inflows into Bitcoin.
- Not everyone agrees M2 indicators are definitive for Bitcoin's trajectory, with some market shifts leaning towards institutional investments.
For more details on Bitcoin’s price prediction and market analysis, consider staying informed on the latest developments.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.