Bitcoin Selling Pressure Expected to Ease as M2 Money Supply Turns Positive

The recent sell-off in Bitcoin may soon see a slowdown, as the year-over-year M2 money supply has shifted into positive territory for the first time since November 2022. This shift serves as a signal for investors to seek hedges against inflation.

Glassnode, a crypto analysis firm, highlighted a rise in Bitcoin "net outflows across all cohorts throughout April," indicating consistent sell-side pressure across various segments, as reported on X.

During the past 30 days, Bitcoin's price experienced a decline of 9.75%, currently trading at $59,586 according to CoinMarketCap data.

On May 1, the M2 Money Supply, which estimates all cash held and short-term bank deposits nationwide, turned positive year-over-year. This signifies an overall increase in money circulation and often prompts investors to focus on assets that tend to outperform during high inflationary periods.

Historically, the Bitcoin and crypto markets have exhibited outperformance relative to traditional financial markets in response to a rise in global M2 supply.

The positive reversal in M2 money supply has led crypto traders to speculate on Bitcoin's price, considering that the supply had been in negative territory since November 2022.

Professional trader and financial author Oliver L. Velez shared a bullish outlook with his 49,800 followers on X, noting the significance of the "year-over-year" positive M2 Money Supply. He encouraged investors to seize buying opportunities during dips, dismissing pessimistic forecasts and affirming a bullish stance on Bitcoin's future trajectory.

It's important to note that this article does not offer investment advice or recommendations. Each investment and trading decision carries inherent risks, and readers are advised to conduct thorough research before making any financial decisions.

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