Bitcoin (BTC) has been making headlines once again as its price edges higher and trades slightly above $85,500 at the time of writing on Tuesday. This comes after the cryptocurrency recovered nearly 7% the previous week, showing signs of a potential bullish trend.
The recent surge in Bitcoin’s price can be attributed to the rising Global M2 money supply, which could be a favorable signal for both Gold and Bitcoin. This is an important development to keep an eye on for investors and traders alike.
The M2 money supply is a measure of the total amount of money in circulation, including cash, checking and savings deposits, and other liquid assets. It is an important indicator of economic activity and can have a significant impact on the value of assets such as Gold and Bitcoin.
In recent months, the M2 money supply has been on the rise, with central banks around the world injecting massive amounts of liquidity into the financial system to combat the economic impact of the COVID-19 pandemic. This has led to concerns about inflation and the devaluation of traditional currencies, making alternative assets like Gold and Bitcoin more attractive to investors.
Gold has long been considered a safe-haven asset during times of economic uncertainty, and its price has been on the rise in recent months. However, Bitcoin has also been gaining traction as a potential hedge against inflation and a store of value.
One of the main reasons for this is Bitcoin’s limited supply. Unlike traditional currencies, which can be printed endlessly, there will only ever be 21 million Bitcoins in existence. This scarcity makes it a valuable asset, especially in times of economic turmoil.
Moreover, Bitcoin has been gaining mainstream acceptance and adoption, with major companies like Tesla and PayPal now accepting it as a form of payment. This has further increased its legitimacy and appeal to investors.
The recent surge in Bitcoin’s price can also be attributed to the growing interest from institutional investors. Companies like MicroStrategy and Square have been investing large sums of money into Bitcoin, and more traditional financial institutions are starting to offer Bitcoin investment options to their clients.
All of these factors combined have created a perfect storm for Bitcoin, leading to its recent price surge. And with the M2 money supply continuing to rise, it is likely that Bitcoin’s price will continue to edge higher in the coming weeks and months.
However, it is important to note that Bitcoin is a highly volatile asset, and its price can fluctuate significantly in a short period of time. This makes it a risky investment, and investors should always do their own research and understand the potential risks before investing in Bitcoin or any other cryptocurrency.
In conclusion, the rising Global M2 money supply is a favorable signal for both Gold and Bitcoin. As traditional currencies continue to lose value, alternative assets like Bitcoin are becoming increasingly attractive to investors. With its limited supply, growing mainstream acceptance, and interest from institutional investors, Bitcoin’s price is likely to continue its upward trend. But as with any investment, caution and due diligence are always advised.
