Cryptocurrency analysis firm Alphractal has released a new report highlighting the correlation between Bitcoin price movements and the global money supply. The analysis shows that when China's money supply (M2) outpaces that of the US, Bitcoin typically trends upward. The report argues that Bitcoin prices have seen a strong increase in the past few weeks, particularly following liquidity injections from the People's Bank of China (PBoC). Furthermore, the decline in US M2 money supply dominance is also considered a positive signal for BTC. According to available data: China's M2 Money Supply: 329.94 trillion yuan. This represents a 0.10% decrease compared to last month and an 8.78% increase compared to last year. US M2 Money Supply: $22.02 trillion. This represents a 0.63% increase compared to last month and a 4.53% increase compared to last year. Related News: Nasdaq Listed Company Announces $700 Million Purchase of Surprise Altcoin - But Price Remains Flat However, according to the analytics firm, the overall crypto market sentiment is currently shifting into the 'Bearish' territory. M2 Money Supply is a measure of the money supply that includes, in addition to M1 money supply, financial assets primarily held by households, such as savings deposits, time deposits, and balances in retail money market mutual funds. M1 includes more liquid financial assets such as cash, traveler's checks, demand deposits, and other withdrawable deposits. *This is not investment advice. Continue Reading: Analytics Firm Reveals Obscure Metric: “Bitcoin Price Moves Up and Down Based on This Data from China”
