Analysts provide a large assembly of bitcoins at the end of March due to cash supply

With the expansion of global liquidity, analysts expect that bitcoins and other digital assets show an important rally that could begin around 25 March 2025 and potentially continue until mid -May.

Influence of M2 on Bitcoin course

M2 of money supplies represents a global scale of liquidity, which includes types, checks and assets of the almost convertible type quasi-leaf. In the past, Bitcoin showed a strong correlation with M2 fluctuations, as increased liquidity in financial markets often stimulates demand for alternative assets such as cryptocurrencies.

Colin speaks Crypto, an analyst on X, emphasized this correlation and pointed to a strong increase in the M2 world. He described this growth as a “vertical line” on the graph and signaled an immediate increase in asset prices.

According to his predictions, the Bitcoin Assembly should start the events and the whole crypto market on March 25, 2025 and extend to 14 May 2025.

“The M2 Graph M2 has just recorded another vertical line. Rally for events, bitcoins and crypto will be epic, ”he said.

Correlation between bitcoins and money offer M2. Source: Colin speaks crypto on x

Vandell, co -founder Black Swan Capilist, claims that the M2 World Movement directly affects the bitcoin course. He notes that M2 usually follows drops from the Bitcoins and Cryptocurrency markets, about ten weeks later.

Despite the short -term decline potential, Vandell believes that this cycle is preparing the soil for a bitcoin bull trend in the long run.

“As we have seen recently, when the world of M2 decreased, bitcoins and crypto followed about 10 weeks later. Although a new decline is possible, this decrease is naturally part of the cycle. This change in liquidity is likely to continue throughout the year and prepares the field for the next step of Rose, ”Vandell said.

Likewise, another popular analyst, Michaël van de Poppe, sees the expansion M2 as one of the five key indicators for early recovery of the crypto market. It also emphasizes that inflation is no longer the main subject of concern, in addition to the expectation of a decline in the US federal reserve rate, financial conditions are more favorable for bitcoins.

“In short, inflation is not the main subject, it should decrease. A decrease in krmes. The dollar is expected to massively weaken. Revenues should fall. M2 cash should be significantly prolonged. And how this process began is only a matter of time before they take over altcoins and crypto. Bull, ”he said.

Historical context and projection for bitcoin movement

Correlation between the Bitcoin course and the growth of money inventory is not new. Tomas, Macroeconomics on X, recently compared previous market cycles, especially in 2017 and 2020. At that time, the main M2 world increased with the best annual bitcoin performance.

“Money offer is around the world. The last two main global increase in M2 in 2017 and 2020 – all two coincided with the mini “bubbles of everything” and the best years of Bitcoins. Could we see this scenario repeatedly in 2025? This will depend on the considerable weakening of the US dollar, ”Tomas said.

Tomáš also emphasized the impact of central banks, suggesting that although large banks reduce their rates, the power of the US dollar could present itself as a limiting factor. If the dollar index (DXY) drops to approximately 100 or less, it could create conditions similar to the previous bulls bitcoin.

Dxy power
DXY power. Source: TradingView

The role of the American federal reserve system

Macroeconomic researcher Yimin XU thinks that the federal reserve system could suspend its quantitative tightening policy (QT) in the second half of 2025. According to Yimin, this approach could potentially develop towards quantitative relaxation (QE). This change could then get up for the markets for further liquidity and supply the ascending trajectory of bitcoins.

“I think the reserves could be too weak to make the fed happy in the second half of the year.” I expect to end QT with a possible QE at the end of the third quarter or fourth quarter, ”said XU.

Tomáš also goes in this direction and stated that the current plan of the Federal Reserve is to slowly increase its evaluation, which agrees with the growth of GDP. It also specifies that the main financial event could cause a complete return to QE.

These prospects suggest that uncertainties remain, especially the power of the US dollar and potential economic shocks. However, a more general consensus among analysts points to the immediate bitcoin bull phase.

In the meantime, however, investors still have to carry out their own research in the coming months and monitor macroeconomic indicators to see if the bitcoin predicted rally will take place.

Morality History: Bitcoin never rises alone.

Notification of irresponsibility

Notice of non -response: In accordance with the TRUST project, Beincrypto undertakes to provide impartial and transparent information. The aim of this article is to provide accurate and relevant information. However, we invite readers to verify their own facts and consult a professional before it decides on the basis of this content.

Leave a Comment