Bitcoin Price Surges 6% to $85,000 as China's M2 Money Supply Hits Record High

Bitcoin's price is currently at $85,000, and according to the analyst's forecast, it could potentially reach $90,000 in the near future. This prediction is based on the recent surge in China's M2 money supply, which has reached a record high of $326.13 trillion. A rise in M2 money supply signals greater liquidity in the financial system, suggesting that more money is often seeking returns in riskier assets like Bitcoin and altcoins.

According to the analyst's forecast, China’s M2 money supply is projected to hit record levels by the end of 2025. This could mean more people willing to invest their cash into riskier assets like crypto, especially now that China’s stance is shifting positively. However, the $90,000 threshold is an important resistance level, necessary to conquer before a run-up to the $100,000 milestone. Whether this is attainable by mid-year remains debatable amid macroeconomic jitters.

There are concerns about trade tensions and a hawkish Federal Reserve stance, which could affect the markets. Additionally, China is liquidating seized cryptocurrencies through private firms to support local government finances amid economic struggles. Despite these factors, the analyst explained that while China’s M2 can contribute to Bitcoin’s upward momentum, especially in bullish times, it is not the only thing crypto market participants should pay attention to.

Traders and investors should brace for macroeconomic headwinds, among other elements, which could temper any near-term gains. The charts suggest that Bitcoin may follow China’s M2 trend toward a price surge, and a historical correlation shows that rising M2 often precedes altcoin price surges. However, it is important to note that these are predictions and not guaranteed outcomes.