Bitcoin Rallies 5.5% as Global M2 Money Supply Correlation Hints at May Blast-Off

Bitcoin's price movement has shown signs of recovery after a brief period of decline on Sunday and Monday. Following a drop to $74,000 on Monday, there were indications that bearish momentum could drive the price even lower. However, bullish investors quickly intervened, purchasing aggressively and pushing the price back up towards the $80,000 level.

This recent price movement is noteworthy because it closely aligns with a significant metric. This metric not only anticipated the crash but is now suggesting a powerful upward trend for the next Bitcoin rally.

Colin, a prominent crypto analyst, recently highlighted Bitcoin's correlation with the global M2 money supply. On the social media platform X, Colin shared a chart illustrating Bitcoin's price correlation with the Global M2 Money Supply, with a 108-day offset. The chart suggests that Bitcoin's price movements have closely followed this offset since August 2024, almost as if the Global M2 Money Supply is serving as a template for Bitcoin's price action.

In his latest post, Colin explained that Bitcoin continues to closely follow the Global M2 Money Supply. The chart he shared overlays Bitcoin’s candlestick movements with a yellow line representing the M2 supply offset by 108 days. The result is a striking correlation that Colin has been tracking for over a year.

The chart highlights a mini-rally that failed and another crash, both of which have played out as predicted by the M2 indicator. With Bitcoin starting April with this crash, the M2 indicator suggests that it could experience a significant upward move soon.

However, Colin noted that the price could consolidate further or experience minor dips before the anticipated rally. The analyst cautioned that Bitcoin is not yet out of the woods but suggested that it could remain mostly sideways until the anticipated "blast-off" in May.

Colin's forecast is based on the idea that Bitcoin could begin a major upward move by early May, which he referred to as a May "blast-off." The yellow M2 projection curve on his chart shows a steep climb starting from May 1, indicating the possibility of Bitcoin rallying toward $128,000 if the correlation remains intact.

However, the analyst acknowledged the short-term risks that Bitcoin and the entire crypto market might face in April. These risks are based on policy concerns regarding the "Trump tariffs," which have recently caused significant market volatility.

The coming weeks will be crucial for the outcome of this anticipated rally. If Bitcoin can hold above the $78,000–$80,000 level while maintaining alignment with the Global M2 Money Supply, May could see the parabolic move that Colin is predicting.

At the time of writing, Bitcoin is trading at $79,255, up by 5.5% in the past 24 hours.