Bitcoin Price Dips Amid M2 Money Supply Fluctuations Signaling Possible New Highs

Multiple analysts have observed a strong correlation between Bitcoin's price movements and the M2 money supply, suggesting that fluctuations in liquidity significantly influence Bitcoin's market dynamics. Recent data show Bitcoin undergoing a correction phase from its all-time highs, with some experts predicting a short-term dip to around $98,000-$100,000 before a rebound that could push prices to new all-time highs, potentially reaching $128,000 or even $400,000 in the longer term. This pattern aligns with historical trends where Bitcoin prices lag M2 money supply changes by approximately three months, indicating that continued monetary expansion could fuel future rallies. Institutional interest is also intensifying, with projections of $427 billion in inflows by 2026 and major corporations increasing their Bitcoin holdings, further supporting the narrative of growing demand and scarcity. Despite short-term price corrections, the consensus among traders and analysts is that Bitcoin remains in a bullish cycle driven by macroeconomic liquidity trends and increasing institutional adoption. These insights underscore the intertwined relationship between global monetary policy, investor behavior, and Bitcoin's price trajectory.