2024

Secret

Bitcoin

Arthur

<ul>
 <li aria-level="1">Increased M2 money supply might influence Bitcoin’s price, suggesting that shifts in liquidity could forecast market movements.</li>
 <li aria-level="1">Historical patterns show Bitcoin often recovers after September slumps; for instance, a 39% rise followed a 7% fall in 2021.</li>
</ul>
Arthur Hayes, closed his short position in BTC, indicating a potential shift in market expectations. 
Initially, Hayes predicted a drop in Bitcoin’s price below the $50,000 mark, leading him to open a short position over the weekend of September 6. His outlook was based on anticipated market corrections.
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 Closed my <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$BTC</a> short, made 3% profit, enough to cover my food and bar tab for KBW. With Bad Gurl Yellen watching mrkts and releasing a weekend statement, if stuff continues to puke next week <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$BTC</a> *MIGHT* rise anticipating more $ liq.
 — Arthur Hayes (@CryptoHayes) <a href="https://twitter.com/CryptoHayes/status/1832623755756970138?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">September 8, 2024</a>
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Hayes had reversed his position, securing a 3% profit, which he mentioned would cover his personal expenses for an upcoming event. 
In a public post, he speculated that if the market continued to decline, there might be an intervention by Janet Yellen, the U.S. Treasury Secretary, referred to in his post as <a href="https://x.com/CryptoHayes/status/1832516049193070838" rel="noopener noreferrer nofollow">“Bad Gurl Yellen”</a>.&nbsp;
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 Bad Gurl Yellen is watching, if markets go down more she will definitely pump up the jam by printing more money. <a href="https://t.co/L81vc07as9" rel="noopener noreferrer nofollow">pic.twitter.com/L81vc07as9</a>
 — Arthur Hayes (@CryptoHayes) <a href="https://twitter.com/CryptoHayes/status/1832516049193070838?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">September 7, 2024</a>
</blockquote>
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Hayes suggested that such interventions could lead to an increase in U.S. dollar liquidity, which might, in turn, <a href="https://www.ethnews.com/is-bitcoins-next-record-break-just-around-the-corner/" rel="noopener noreferrer nofollow">boost Bitcoin’s value</a> as early as the following week.
Further discussions on market liquidity were <a href="https://x.com/Jamie1Coutts/status/1790899680324599986" rel="noopener noreferrer nofollow">noted</a> by Jamie Coutts, chief cryptocurrency analyst at Real Vision. Coutts emphasized the correlation between the M2 money supply—comprising cash and short-term bank deposits—and Bitcoin’s price movements.&nbsp;
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f4ca.png" alt="📊" class="wp-smiley" style="height: 1em; max-height: 1em;"> Global Money Supply and <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Bitcoin</a>
 Its attempting to punch through multi-year resistance. Some thoughts from my recent piece <a href="https://twitter.com/RealVision?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@RealVision</a>
 <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f9f5.png" alt="🧵" class="wp-smiley" style="height: 1em; max-height: 1em;"> <a href="https://t.co/vh9elQHKIs" rel="noopener noreferrer nofollow">pic.twitter.com/vh9elQHKIs</a>
 — Jamie Coutts CMT (@Jamie1Coutts) <a href="https://twitter.com/Jamie1Coutts/status/1790899680324599986?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">May 16, 2024</a>
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He pointed out that the velocity of M2 changes is more indicative of potential market movements than the absolute values of M2.
Despite the current market sentiment categorized as “extreme fear” due to <a href="https://www.ethnews.com/why-bitcoin-might-not-hit-its-peak-next-year-inside-scoop/" rel="noopener noreferrer nofollow">Bitcoin’s recent drop</a> below $50,000, <a href="https://x.com/rektcapital/status/1832127571317666192" rel="noopener noreferrer nofollow">historical data</a> provided by cryptocurrency analyst Rekt Capital shows that such corrections are typical for September, historically Bitcoin’s most volatile month.&nbsp;
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 <a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#BTC</a>
 When Bitcoin retraced -7% in September in 2017…
 Bitcoin rallied +47% in the following October
 When BTC retraced -7% in September in 2020…
 BTC rallied +27% in the following October
 When BTC retraced -7% in September in 2021…
 BTC rallied +39% in the following… <a href="https://t.co/sBgeS2Lafi" rel="noopener noreferrer nofollow">https://t.co/sBgeS2Lafi</a> <a href="https://t.co/5N3T9wwatG" rel="noopener noreferrer nofollow">pic.twitter.com/5N3T9wwatG</a>
 — Rekt Capital (@rektcapital) <a href="https://twitter.com/rektcapital/status/1832127571317666192?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">September 6, 2024</a>
</blockquote>
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Rekt Capital noted that similar declines in past years were followed by strong recoveries, exemplified by a 39% increase in October 2021 after a 7% drop the previous month.
This backdrop of potentially increased liquidity and historical recovery patterns suggests that Bitcoin might experience an <a href="https://www.ethnews.com/could-this-be-the-moment-bitcoin-investors-have-been-waiting-for/" rel="noopener noreferrer nofollow">upward trajectory</a> in the near term, contingent on broader economic actions, particularly those involving monetary policy adjustments by the Federal Reserve.
The post <a href="https://www.ethnews.com/secret-financial-indicator-that-could-predict-bitcoins-next-big-surge/" rel="noopener noreferrer nofollow">Secret Financial Indicator That Could Predict Bitcoin’s Next Big Surge!</a> appeared first on <a href="https://www.ethnews.com" rel="noopener noreferrer nofollow">ETHNews</a>.

Secret Financial Indicator That Could Predict Bitcoin’s Next Big Surge!

ETHNews

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