Bitcoin's Rally Tracked This Crucial Macro Indicator—And Now It's Pointing To A Correction

Benzinga12-24 22:27

Bitcoin's BTC/USD strong correlation with global M2 money supply has raised concerns of a potential price correction, according to Joe Consorti, Head of Growth at Theya (YC). What Happened: Consorti ...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBitcoin's Rally Tracked This Crucial Macro Indicator—And Now It's Pointing To A Correction\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-24 22:27 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.benzinga.com/markets/cryptocurrency/24/12/42669525/bitcoins-rally-tracked-this-crucial-macro-indicatorand-now-its-pointing-to-a-correction><strong>Benzinga</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Bitcoin's BTC/USD strong correlation with global M2 money supply has raised concerns of a potential price correction, according to Joe Consorti, Head of Growth at Theya (YC).\nWhat Happened: Consorti ...</p>\n\n<a href=\"https://www.benzinga.com/markets/cryptocurrency/24/12/42669525/bitcoins-rally-tracked-this-crucial-macro-indicatorand-now-its-pointing-to-a-correction\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4588","symbol_name":"碎股","start_time":0,"source_url":"https://www.benzinga.com/markets/cryptocurrency/24/12/42669525/bitcoins-rally-tracked-this-crucial-macro-indicatorand-now-its-pointing-to-a-correction","article_id":"2493908063","we_media_id":null,"thumbnails":["https://www.benzinga.com/files/images/story/2024/12/24/Bitcoin-halving.jpeg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2493908063","pubTimestamp":1735050450,"columns":[],"sourceInfo":{"source_id":"Benzinga","name":"Benzinga Cypto"},"weMediaInfo":null,"summary":"Bitcoin&#39;s (CRYPTO: BTC) strong correlation with global M2 money supply has raised concerns of a potential price correction, according to Joe Consorti, Head of Gr","collect":0,"end_time":0,"defaultTopTitle":"benzinga.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4588":"碎股","IBIT":"iShares Bitcoin Trust","BK4601":"加密货币现货ETF","BK4585":"ETF&股票定投概念","BK4594":"比特币ETF概念"},"translate_title":"比特币的反弹追踪了这一关键的宏观指标——现在它指向回调","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"IBIT":1},"content_text":"Bitcoin's BTC/USD strong correlation with global M2 money supply has raised concerns of a potential price correction, according to Joe Consorti, Head of Growth at Theya (YC).\nWhat Happened: Consorti highlighted Bitcoin's close relationship with global M2 money supply in a post on X on Dec.19, saying \"Bitcoin has followed global M2 with extreme precision since September last year.\"\nM2 refers to the broad measure of money in circulation, including cash, deposits, and near-liquid assets, and is often used as an indicator of economic liquidity.\nConsorti noted Bitcoin’s rally from $40,000 to over $100,000 coincided with a period of liquidity expansion.\nHowever, with global M2 contracting in recent months, Consorti cautioned that Bitcoin could face a larger correction, potentially revisiting levels around $90,000 or even lower.\nBitcoin typically lags changes in M2 by approximately 10 weeks, making its correlation a reliable indicator of potential price movements. \nAlso Read: Did Vladimir Putin Just Ban Bitcoin Mining In Russia? The Devil Is In The Details\n\"Global liquidity has been contracting for the last six weeks, and Bitcoin historically follows this trend with a noticeable lag,\" Consorti noted.\nDespite the risks, Consorti suggested that Bitcoin's price trajectory could diverge from M2 trends under the right conditions. \n\"Native buying pressure and favorable events could help Bitcoin decouple from global M2, though it remains uncertain for now,\" he said.\nConsorti's analysis extends to the role of broader macroeconomic factors, including the U.S. Federal Reserve's monetary policy and fiscal stimulus measures. \nWhile supportive conditions in the U.S. may provide a buffer, the contraction in global M2 and liquidity remains a key concern.\nLater in a tweet, Consorti said, \"Bitcoin is down ~$7,500 to $92,500, following global M2 (USD-denominated) to a T. Favorable BTC-native events could help buck this trend.\"\n\nUpdate: 5 days after my last chart, bitcoin is down ~$7,500 to $92,500.Following global M2 (USD-denominated) to a T.Largely a story of strong USD trouncing everything. Favorable BTC-native events like Trump's inauguration could help BTC buck this trend.Merry Christmas ✝️🎄 pic.twitter.com/mcDd56nm1G— Joe Consorti ⚡️ (@JoeConsorti) December 23, 2024\n\nWhat’s Next: While a correction is possible, Consorti maintains optimism about Bitcoin's long-term potential.\nHe pointed to increasing adoption, institutional interest, and structural demand as factors that could help stabilize Bitcoin's trajectory despite macroeconomic headwinds.\nRead Next: \n\nDeribit Eyes Growth In Asset-Backed Crypto With Pax Gold Debut\n\nImage: Shutterstock $BTCBitcoin$96767.672.11%WatchlistOverviewMarket News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. 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