Questions tagged [m2 money supply]

Federico Thu Jul 18 2024 | 6 answers 1305

Could you elaborate on the potential impact of the M2 money supply on Bitcoin and crypto markets? Does an increase in M2 suggest a potential influx of capital into these markets, thus driving up prices? Or does it indicate a shift in investor sentiment away from traditional assets towards digital currencies? Furthermore, are there any historical precedents that suggest a correlation between the M2 money supply and crypto market movements? Understanding this relationship could be crucial for investors navigating the volatile world of cryptocurrencies.

CryptoTitan Tue Jul 16 2024 | 5 answers 841

In the current economic landscape, the M2 money supply has recently turned positive, sparking speculation among investors and analysts. Could this be a bullish signal for the king of cryptocurrencies, Bitcoin? On the surface, an increase in the M2 money supply suggests that more liquidity is entering the economy, potentially fueling demand for alternative investments like Bitcoin. However, the crypto market is notoriously volatile and influenced by a myriad of factors. So, is the M2 money supply actually a reliable indicator of Bitcoin's future trajectory? Let's delve deeper into this intriguing question.