TechFlow news, on February 26, according to Cointelegraph, Pav Hundal, Chief Analyst at Australian cryptocurrency exchange Swyftx, said that global M2 money supply growth could trigger a significant rise in Bitcoin. However, he also warned investors against betting all their capital on short-term adjustments. Hundal noted: "Under normal circumstances, global easing measures are a fairly reliable leading indicator for cryptocurrencies. The data we have shows spot buyers are currently active, and the U.S. has raised its debt ceiling by $4 trillion."
On February 25, crypto analyst Bravo Research tweeted that U.S. money supply has doubled over just ten years, stating, "This surge in liquidity could drive parabolic growth in Bitcoin."
According to MacroMicro data, the year-on-year growth rate of M2 money supply from the four major central banks reached 3.65% in January under constant exchange rates. Many cryptocurrency analysts point out that historical trends show increases in global M2 money supply typically lead to higher Bitcoin prices, driven by increased liquidity and lower interest rates. Economist Lyn Alden wrote in a research report last September that Bitcoin moved in the same direction as global M2 83% of the time.
