Bitcoin’s Rally Tracked This Crucial Macro Indicator—And Now It’s Pointing To A Correction
Bitcoin‘s (CRYPTO: BTC) strong correlation with global M2 money supply has raised concerns of a potential price correction, according to Joe Consorti, Head of Growth at Theya (YC).
What Happened: Consorti highlighted Bitcoin’s close relationship with global M2 money supply in a post on X on Dec.19, saying “Bitcoin has followed global M2 with extreme precision since September last year.”
M2 refers to the broad measure of money in circulation, including cash, deposits, and near-liquid assets, and is often used as an indicator of economic liquidity.
Consorti noted Bitcoin’s rally from $40,000 to over $100,000 coincided with a period of liquidity expansion.
However, with global M2 contracting in recent months, Consorti cautioned that Bitcoin could face a larger correction, potentially revisiting levels around $90,000 or …
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