Bitcoin News Today: Rising M2 Liquidity Seen as Potential Catalyst for Bitcoin Breakout

The Glassnode founders, under their joint X handle Negentropic, have highlighted key factors likely to influence Bitcoin’s next major price movement. According to their analysis, the current market is in a state of deadlock, where neither buyers nor sellers are showing strong conviction. This equilibrium, however, is unlikely to persist, as the return of M2 liquidity could act as a potential turning point in the near future [1].

M2, a broad measure of the money supply in the U.S. and Eurozone, is widely regarded as a leading indicator for Bitcoin price trends. Recently, Bitcoin dipped to $111,919 following a peak above $120,000 but has since rebounded to approximately $114,000. The analysts suggest that the lagging effect of a rising M2 could soon materialize, which may reduce downward pressure on the asset and limit bearish opportunities [1].

Federal Reserve data indicates that M2 is recovering from its April peak, reflecting a broader shift toward more bullish liquidity conditions. If this trend continues, it could provide the catalyst needed for Bitcoin to break out of its current sideways consolidation pattern and potentially initiate a new upward trend [1].

The analysis underscores the importance of macroeconomic indicators in shaping Bitcoin’s price trajectory, reinforcing the view that the cryptocurrency is increasingly influenced by traditional financial dynamics. While the precise timing of any breakout remains uncertain, the alignment between rising M2 and favorable liquidity conditions suggests that the current price range may not last much longer [1].

The information provided in the analysis is for informational purposes only and does not constitute financial, investment, or trading advice. Readers are urged to conduct their own due diligence and consult with licensed financial advisors before making any investment decisions [1].

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[1] Here is What Will Decide Bitcoin’s Next Move, According to Glassnode Founders (https://coinmarketcap.com/community/articles/6893d1639ff08f0ef3199775/)