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bitcoin

Bitcoin Moves With Gold And M2 Money Supply – Next Rally Loading?

Ash Tiwari
by Ash Tiwari
1 month ago
·
Posted in Bitcoin News
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Bitcoin (BTC) is increasingly mirroring gold’s historic price performance and the trajectory of the global M2 money supply, prompting crypto analysts to forecast a potential major rally for the world’s leading cryptocurrency.

Bitcoin Following Gold, M2 Money Supply

In an X post shared earlier today, crypto analyst Jelle shared the following chart that reveals a recurring pattern – gold tends to lead Bitcoin, which subsequently “catches up” in price action. This relationship underscores the growing perception of BTC as digital gold.

jelle
Source: Jelle on X

Historically, Bitcoin’s price movements have aligned with those of gold, driven by similar macroeconomic dynamics such as inflation, expansive monetary policy, and investor demand for scarce assets. As gold continues to rally amid rising global liquidity and geopolitical tensions, Bitcoin appears to be following suit.

Related Reading: Bitcoin Could Capture 10% Of $20 Trillion Global Money Supply Growth In 2025, Analyst Predicts

Bitcoin’s reputation as a store of value is also gaining traction among institutions. Robert Mitchnick, Head of Digital Assets at BlackRock, recently described BTC as a “superior alternative” to gold – a strong endorsement from the world’s largest asset manager.

Meanwhile, another analyst, CryptoGoos, drew attention to BTC’s tendency to follow shifts in the global M2 money supply. He noted that Bitcoin often lags behind increases in M2 by roughly two months, suggesting that the cryptocurrency may soon witness another rally.

goos
Source: CryptoGoos on X

For the uninitiated, the global M2 money supply refers to the total amount of money circulating in the economy, including cash, checking deposits, and other similar monetary instruments. An increase in M2 often signals monetary expansion, which can lead to inflation and push investors toward assets like gold and Bitcoin as hedges.

From a technical perspective, BTC is also showing bullish signs. In an X post today, seasoned analyst Titan of Crypto pointed out that Bitcoin has formed a golden cross on the four-hour chart. 

This occurs when a short-term moving average (MA), typically the 50-day MA, crosses above a long-term average, such as the 200-day MA. The golden cross is widely regarded as a bullish indicator and may signal further upside.

New ATH Possible But Support Breakdown Risks Remain

Various metrics suggest that the BTC rally is far from over yet. For instance, Titan of Crypto recently stated that BTC is following the Golden Ratio Multiplier, targeting $130,000.

Related Reading: Metaplanet Rockets To Top 10 Bitcoin Holders After $117 Million Purchase

Similarly, crypto enthusiast KillaXBT predicted a BTC price of $120,000 by mid-June. However, there are some risks to monitor to avoid getting caught up in a price crash.

Analysts caution that if Bitcoin falls below the critical support range of $97,000 – $99,000, it could trigger a sharper correction. At press time, BTC trades at $106,610, up 2.2% in the past 24 hours.

bitcoin
BTC trades at $106,610 on the daily chart | Source: BTCUSDT on TradingView.com
Featured Image from Unsplash.com, charts from X and TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
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Ash Tiwari

Ash Tiwari

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Ash is a seasoned freelance editor and writer with extensive experience in the blockchain and cryptocurrency industry. Over the course of his career, he has contributed to major publications, playing a key role in shaping informative, timely content related to decentralized finance (DeFi), cryptocurrency trends, and blockchain innovation. His ability to break down complex topics has allowed both seasoned professionals and newcomers to the industry to benefit from his work. Beyond these specific roles, Ash's writing expertise spans a wide array of content, including news updates, long-form analysis, and thought leadership pieces. He has helped multiple platforms maintain high editorial standards, ensuring that articles not only inform but also engage readers through clarity and in-depth research. His work reflects a deep understanding of the rapidly evolving blockchain ecosystem, making him a valuable contributor in a field where staying current is essential. In addition to his writing work, Ash has developed a strong skill set in managing content teams. He has led diverse groups of writers and researchers, overseeing the editorial process from topic selection, approval, editing, to final publication. His leadership ensured that content production was timely, accurate, and aligned with the strategic goals of the platforms he worked with. This has not only strengthened his expertise in content strategy but also honed his project management and team coordination skills. Ash's ability to combine technical expertise with editorial oversight is further bolstered by his knowledge of blockchain analysis tools such as Etherscan, Dune Analytics, and Santiment. These tools have provided him with the data necessary to create well-researched, insightful articles that offer deeper market perspectives. Whether it’s tracking the movement of digital assets or analyzing blockchain transactions, his analytical approach adds value to the content he produces, ensuring readers receive accurate and actionable information. In the realm of content creation, Ash is not limited to just cryptocurrency markets. He has demonstrated versatility in covering other emerging technologies, market trends, and digital transformation across various industries. His in-depth research, coupled with a sharp editorial eye, has made him a sought-after professional in the freelance writing community. From developing editorial calendars to managing content delivery schedules, he has honed a meticulous approach to project management that ensures timely, high-quality work delivery. Throughout his freelance career, Ash has consistently focused on improving audience engagement through well-researched, insightful, and relevant content. His ability to adapt to the evolving needs of clients, whether it's enhancing the visibility of digital platforms or producing thought-provoking pieces for a wide range of audiences, sets him apart as a dynamic force in the field of digital content creation. His contributions have helped to shape a well-rounded portfolio that showcases his versatility, technical expertise, and dedication to elevating the standards of journalism in blockchain and related sectors.

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