Storm Ahead? Bitcoin Price Could Tumble 20% Due To M2 Supply Concerns

Investors are concerned about Bitcoin's recent price fluctuations, especially with predictions of a 20-25% decline in the global M2 money supply. Bitcoin's price has been tracking the M2 money supply with a 70-day lag since September 2023. The latest drop in M2 suggests Bitcoin might fall to support levels of $88,000 or $80,000. Long-term holders have been selling over 507,000 BTC since September 2023, indicating a shift in market sentiment. The Realized Profit/Loss ratio has reached new historical highs, signaling an overheated market. Despite warnings of additional corrections, some analysts believe Bitcoin's price can normalize at lower levels. The future of Bitcoin remains uncertain as it navigates these challenges.