Bitcoin Could Hit New Highs as M2 Money Supply Decreases

Analyst Merlijn suggests that Bitcoin’s price may surge past $128,000 if historical patterns continue, especially in relation to changes in the U.S. M2 money supply. BTC tends to rise after drops in M2, with significant recovery patterns observed in the past. Currently, Bitcoin is trading at $104,525.70, down by 0.29% over the last day.

Bitcoin (BTC) is potentially on the brink of a significant price surge, with some analysts speculating it could soar past the $128,000 mark. Merlijn, a trader and analyst, suggests historical trends link BTC’s performance closely to fluctuations in the U.S. M2 money supply, a vital indicator of the circulating money available for spending. The notion is that a decrease in M2 precedes price surges in digital currencies, echoing patterns seen in past years.

In the current year, both Bitcoin and the M2 money supply have seen downward movements. However, Merlijn remains hopeful and points to past downturns as a sign that recovery may be on the horizon. He highlights that during previous periods of M2 decline, Bitcoin typically experienced a temporary dip before rebounding impressively. March 2025 is being highlighted as a “Reversal Area” where historically, M2 reaches its nadir and BTC marks the beginning of its recuperation.

The trader has identified a particular pattern visible on Bitcoin’s price chart. Observations indicate that after each significant drop in the M2 supply, there tends to be a noteworthy spike in Bitcoin’s valuation, usually leading to new all-time highs (ATH). There are two significant dips already noted this year, with BTC rising each time thereafter. With a current trading price of around $103,445 at the time of Merlijn’s review, indications are strong for a substantial leap towards $128,000 as suggested by trend patterns.

Right now, traders are keenly attuned to the relationship between Bitcoin’s valuation and the M2 money supply, noting that continued decreases in M2 could pave the way for yet another rally in BTC’s price. As of this moment, Bitcoin is trading at approximately $104,525.70, having dipped slightly by 0.29% today. Meanwhile, a hefty $42.79 billion in BTC has exchanged hands in the last 24 hours, representing a significant 28.89% decrease compared to the previous day’s trading volume.