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Bitcoin Could Hit New All-Time High as M2 Money Supply Climbs Again

Published by
Vignesh S G

A key economic indicator is flashing green for Bitcoin. The M2 Money Supply—which tracks how much easily accessible money is circulating in the economy—is starting to rise again. Historically, Bitcoin prices have moved in sync with this metric. Now, analysts are watching closely to see if this trend will send Bitcoin to a new all-time high before the quarter ends.

Here’s what you need to know.

What Is M2 and Why Does It Matter?

M2 is one of the ways economists measure the amount of money available in an economy. M1 includes cash and checking deposits. M2 goes a step further—it includes everything in M1 plus savings accounts, money market accounts, and certificates of deposit.

Crypto analyst Michael van de Poppe recently shared a chart on X showing that M2 is beginning to rise again, which could mean more liquidity is entering the market.

Historical Correlation Between M2 and Bitcoin Prices

In the past, when M2 has gone up, Bitcoin has followed. The idea is that when more money is available, investors look for assets with higher returns—like Bitcoin.

Right now, Bitcoin is priced at $85,738.15 dollars, having jumped more than 8% in the past seven days. Van de Poppe believes that if this pattern continues, Bitcoin could reach a new all-time high sometime this quarter.

A Flashback to the Last Bitcoin Peak

The last time Bitcoin was closing in on an all-time high, the US was preparing for a major political change. On January 20, just hours before Donald Trump’s inauguration, Bitcoin crossed the key $109,000-dollar mark. But after January 21, the price fell sharply—dropping more than 19.28%.

What This Could Mean for Other Markets

Van de Poppe also warns that a rise in Bitcoin alongside M2 could lead to unexpected moves in other markets. According to him, we could see:

  • Lower bond yields
  • Falling gold prices
  • A weaker US dollar index
  • A stronger CNH/USD exchange rate
  • An increase in altcoin activity

Bond yields have been steadily rising since the start of this month, especially after Trump announced new tariffs. Here’s where they stand now:

  • 5-year yield: 4.021%
  • 10-year yield: 4.384%
  • 20-year yield: 4.862%
  • 30-year yield: 4.821%

The gold market is also in focus. The Gold Spot price is currently at $3,222.89 dollars. On April 11, it even hit an all-time high of $3,244 dollars, showing strong interest in traditional safe-haven assets.

Watch the Data Closely

While the rising M2 supply is creating optimism for Bitcoin and the wider crypto market, caution is still necessary. Correlations can break, and economic conditions can shift without warning.

As analysts highlight possible ripple effects across different assets, staying informed will be key. Whether this is the start of a long-term rally or just a short-term move, the next few weeks are likely to play a major role in deciding Bitcoin’s direction.

FAQs

How does M2 money supply affect Bitcoin prices?

When M2 rises, liquidity increases, often boosting demand for assets like Bitcoin, driving prices higher.

Could Bitcoin reach a new all-time high in 2025?

Analysts say rising M2 could push Bitcoin to a new ATH this quarter if historical patterns continue.

Vignesh S G

Vignesh is a young journalist with a decade of experience. A proud alumnus of IIJNM, Bengaluru, he spent six years as a Sub-Editor for a leading business magazine, published from Kerala. His interest in futuristic technologies took him to a US-based software company specialising in Web3, Blockchain and AI. This stint inspired him to view the future of journalism through the lens of next generation technologies. Now, he covers the crypto scene for Coinpedia, uncovering a vibrant new world where technology and journalism converge.

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