Bitcoin Tumbles—Traders Now Staring Down Money Supply Charts Like Nostradamus Deciphering Chicken Bones
Crypto’s latest plunge has everyone suddenly pretending they understand M2 velocity. Spoiler: They don’t.
When BTC bled 15% last week, the usual suspects—macro fears, ETF outflows—got airtime. But the real action? Money supply metrics flashing signals only quant PhDs and doomsday preppers claim to comprehend.
Here’s what matters: The Fed’s balance sheet contraction just hit its steepest pace since 2018. For crypto’s liquidity junkies, that’s like cutting the cocaine supply to Wall Street’s after-hours party.
Pro tip: Watch Tether’s market cap. When stablecoins shrink, altcoins get vaporized faster than a meme stock CFO’s credibility.
Closing thought: Maybe Satoshi should’ve coded a ’print more money’ button for emergencies. Oh wait—that’s the Fed’s entire playbook.
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Analysts also expect a bullish June, with the global M2 supply now topping $111 trillion. With major economies leaning toward looser monetary policies due to economic headwinds, the macro backdrop could continue to benefit Bitcoin’s appeal as a hedge.
Meanwhile, Bitcoin’s role as a strategic asset is gaining political traction. Several U.S. states are pushing legislation to treat BTC as a reserve holding, and Senator Cynthia Lummis says Congress may revisit the Bitcoin reserve bill after completing stablecoin regulation.
Corporate adoption, however, remains mixed. While companies like GameStop are adding BTC to their balance sheets, others like Meta and Microsoft have passed for now—highlighting a cautious but growing acceptance of Bitcoin in institutional finance.
