- China’s M2 is now 2.1 times larger than the US, boosting Bitcoin’s bullish prospects.
- Historical trends link rising China M2-to-US M2 ratios with Bitcoin price increases.
- The current ratio of 2.2 aligns with Bitcoin nearing $100K, signaling strong upside potential.
Fascinating macroeconomic trend is unfolding that could propel Bitcoin to new heights Bull Run. Recent data from Alphractal highlights a striking correlation: China’s M2 money supply, now 2.1 times larger than the U.S. M2 at $24.9 trillion, appears to be a key driver of Bitcoin’s price movements. While U.S. M2 has stagnated, China’s relentless liquidity growth suggests a potential bullish momentum for BTC.
Historical patterns show that when China’s M2 outpaces the U.S., Bitcoin tends to rise, a trend that has held across multiple cycles. This insight, often overlooked, points to China’s silent yet powerful influence on the crypto market.
The Correlation Between China’s M2 and Bitcoin’s Rise
The charts reveal a clear narrative: periods of rising China-U.S. M2 ratio align with Bitcoin’s upward trajectories, especially post-2021 when China’s mining ban was enacted. Despite this, Chinese miners and whales remain active, hinting at underground resilience.
The current ratio, nearing 2.2, aligns with Bitcoin’s recent climb toward $100K, suggesting more room to grow if liquidity injections continue. The big question is where this capital is headed—could it be fueling a global shift toward decentralized assets?
Why Bitcoin Could Hit $100K?
This macro alpha is a game-changer for investors. As China’s liquidity dwarfs the U.S., Bitcoin could serve as a hedge against traditional financial systems. However, risks like regulatory crackdowns or a pivot to assets like gold could alter the trajectory.
The upcoming Alphractal report promises deeper insights, but for now, the data suggests Bitcoin’s role as a global liquidity barometer is stronger than ever. Keep an eye on China’s next move—it might just dictate BTC’s future.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
