Casey R's avatar
Casey R 1 year ago
image This is a great chart. BTC price (black) and global M2 (blue). The two are highly correlated, as is often pointed our by @less. Historically, #bitcoin bull markets have coincided with increases in global M2... which has just begun to increase again now. Hold on to your hats! #bullish Source: bgeometrics

Replies (10)

imnuso's avatar
imnuso imnuso@primal.net 1 year ago
It looks like M2 "outperforming" bitcoin starting in 2020. Just by looking at the chart. However, I remember some people believing that SBF manipulated the market and artificially lowered the price of bitcoin.
1 replies ↓
Casey R's avatar
Casey R 1 year ago
Right. The bull market in 2021 was cut short, in large part due to China banning mining and sending the hash rate plummeting. After that was the FTX fiasco. I don't know if SBF was manipulating the BTC price, but those two things definitely had an impact.
1 replies ↓
Casey R's avatar
Casey R 1 year ago
As the price begins to rise, the speculators pile in out of FOMO causing that unsustainable parabolic move to the upside which eventually corrects.
1 replies ↓
ZimFox's avatar
ZimFox 1 year ago
Ok - Yes - that makes sense - thanks. So initial runup triggered by M2 growth - BTC overreacts with FOMO and then peaks prior to M2 peak correcting faster to a new base level
1 replies ↓
imnuso's avatar
imnuso imnuso@primal.net 1 year ago
Yeah, it was a bummer, especially because most people were overly optimistic given that nation-state adoption was becoming a thing. But no blow off top. Maybe this cycle.
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