Cryptocurrency Q&A
Does higher m2 mean higher bitcoin price?
Does higher m2 mean higher bitcoin price?
EnchantedSoul
Fri Jul 19 2024
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6 answers
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As a seasoned observer in the world of cryptocurrency and finance, I must inquire: Does a higher M2, referring to the measure of money supply in a country's economy, directly correlate to a higher Bitcoin price? This question arises from the intricate relationship between macroeconomic factors and the volatile nature of cryptocurrencies. Is there a clear trend indicating that an increase in M2 leads to a corresponding surge in Bitcoin's market value? Or are there other, perhaps more intricate, factors at play that influence this dynamic? Clarifying this relationship could offer valuable insights to investors and analysts alike.
6 answers
SeoulSerenitySeekerPeace
Sun Jul 21 2024
The correlation between the rise in M2 money supply and the potential appreciation of bitcoin price is noteworthy.
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Silvia
Sun Jul 21 2024
Historical data suggests that in the aftermath of bitcoin's halvings, there has been a noticeable increase in the aggregate M2 money supply growth of major central banks, including the Fed, ECB, BOJ, and PBOC.
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Martina
Sun Jul 21 2024
These post-halving bull runs typically exhibit an aggregate M2 growth rate of 6% or higher.
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DreamlitGlory
Sat Jul 20 2024
Conversely, bear markets in the bitcoin market have coincided with a deceleration in the money supply growth rate.
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FireFlyer
Sat Jul 20 2024
This pattern suggests that the expansionary monetary policies of central banks, reflected in the increasing M2 money supply, may be a contributing factor to the appreciation of bitcoin prices.
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