Bitcoin

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<p>Over the past decade, the global money supply has increased by at least $50 trillion, boosting the growth of many financial markets, including cryptocurrency. Bitcoin (BTC), often seen as a hedge against inflation, has especially benefited from this surge. But recently, the global money supply has dropped sharply, and Bitcoin is finding it difficult to <a href="https://coinpedia.org/news/will-bitcoin-hit-100k-the-significance-of-november-28-unveiled/" target="_blank" rel="noreferrer noopener">hit the coveted $100K mark</a>.</p>   
<p>Could Bitcoin’s current struggles be linked to the falling money supply? Let’s explore this in more detail.</p>   
<h2 class="wp-block-heading" id="h-bitcoin-s-price-surge-and-slowdown">Bitcoin’s Price Surge and Slowdown</h2>   
<p>Bitcoin started at around $69,542.78 and surged by more than 45.82% between November 5 and 22, reaching an all-time high of $98,884.91. However, the momentum slowed shortly after.</p>   
<p>Between November 24 and 26, Bitcoin saw its first major price drop since November 5, falling by over 7.06%. The market has not fully recovered from this correction, and just yesterday, BTC dropped another 0.23%.</p>   
<h2 class="wp-block-heading" id="h-how-m2-money-supply-affects-bitcoin-s-price">How M2 Money Supply Affects Bitcoin’s Price</h2>   
<p>The M2 Growth Year-over-Year (YoY) index tracks changes in the global money supply. This year, it has fluctuated significantly. At the start of the year, the M2 index was at 3.19%, but it fell to -0.18% in mid-February. By early March, it sharply rose to 2.72%, only to dip again to -0.34% by mid-April.</p>   
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<p>The index saw another sharp rise between August 5 and September 30, climbing from 4.17% to 7.09%. But it has since fallen to 1.83%.</p>   
<p>Bitcoin has historically thrived during periods of rising M2 growth. For example, when the M2 index jumped from -0.18% to 2.72% between February 12 and March 4, Bitcoin hit its previous all-time high of $73,000. If the index continues to decline, it could limit Bitcoin’s short-term growth potential.</p>   
<h2 class="wp-block-heading" id="h-the-impact-of-liquidity-on-bitcoin-s-volatility">The Impact of Liquidity on Bitcoin’s Volatility</h2>   
<p>Low liquidity often results in higher volatility in the Bitcoin market. As liquidity decreases, price swings become more extreme, which adds to the uncertainty in the market.</p>   
<p>At the time of writing, the global M2 supply stands at approximately $105.09 trillion, 2.24% lower than the $108.02 trillion supply on September 30. This decline in money supply plays a crucial role in <a href="https://coinpedia.org/price-analysis/120000-price-target-activated-for-the-bitcoin-btc-price-rally-will-it-be-achieved-in-2024/">Bitcoin’s price movements</a>.</p>   [post_titles_links postid="386740"]   
<h2 class="wp-block-heading" id="h-here-s-what-investors-need-to-know">Here's What Investors Need to Know</h2>   
<p>As global money supply trends continue to shift, Bitcoin’s price will likely remain tied to liquidity changes. While decreasing liquidity could slow down Bitcoin’s momentum, its long-term potential remains intact. </p>   
<p>Investors will need to keep a close eye on macroeconomic indicators, especially the M2 index, to understand where Bitcoin’s price might be heading next.</p>   
<p><strong>With liquidity at the forefront, Bitcoin’s price may face more turbulence, but its long-term potential remains as intriguing as ever. </strong></p>   
<h2 class="wp-block-heading" id="h-faqs">FAQs</h2>   
<div class="schema-faq wp-block-yoast-faq-block">
 <div class="schema-faq-section" id="faq-question-1732879803582">
  <strong class="schema-faq-question">Why is Bitcoin struggling to reach $100K?</strong> 
  <p class="schema-faq-answer">Bitcoin’s struggle to reach $100K is linked to a drop in the global money supply, reducing liquidity and growth momentum.</p> 
 </div> 
 <div class="schema-faq-section" id="faq-question-1732879822002">
  <strong class="schema-faq-question">How does low liquidity impact Bitcoin’s volatility?</strong> 
  <p class="schema-faq-answer">Low liquidity makes Bitcoin more volatile, causing extreme price swings due to fewer trades and lower market depth.</p> 
 </div> 
</div>   
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Why is Bitcoin Struggling to Cross $100K? Money Supply Trends Analysis

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