Key points:
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Global M2 money supply could send Bitcoin to $500,000 if it repeats its 2020 expansion.
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The price increased six times after the worldwide COVID-19 money printing spree.
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The latest M2 jump comes as central banks cut interest rates while inflation lingers.
Bitcoin (BTC) may reach $500,000 if it repeats its reaction to booming global M2 money supply growth.
Analysis from Onramp Bitcoin co-founder Jesse Myers, uploaded to X on Tuesday, confirms the biggest M2 supply jump since the COVID-19 pandemic began.
Bitcoin vs. M2 supply: 2020 all over again?
Bitcoin bulls can look forward to serious gains if BTC price action copies its moves through the end of 2020.
Global M2, which tends to lead Bitcoin upside with a slight delay, is currently increasing at a pace not seen since the COVID-19 cross-market crash in March 2020.
“The money printer hasn’t run this hot since COVID. Global M2 money supply now ~$137T Was $129T just 6 months ago,” Myers wrote alongside data compiled from TradingView.
Global M2 money supply chart. Source: Jesse Myers/XThe 6.2% M2 increase since March this year leaves some way to go before reaching 2020 levels. Then, Myers noted, the supply added 21% by the end of the year.
“With a little delay, Bitcoin went on a 6x rally Q4 2020 – Q1 2021,” he continued.
While a Bitcoin copycat move appears unlikely, it would take BTC/USD over the $500,000 mark into 2026.
Last week, the US M2 supply reached a new all-time high of over $22 trillion, according to data from Barchart.
US M2 money supply. Source: Barchart/XBTC price “launch coming” as printing continues
Responding, asset manager Lawrence Lepard still predicted that the trend would have a classic knock-on effect on Bitcoin.
Related: Bitcoin’s MVRV Ratio hints at ‘cyclical bottom’ forming below $110K
Discussing the idea, Lepard described M2 as the “real rate of inflation,” dismissing central-bank inflation targets such as the US Federal Reserve’s 2% goal.
As Cointelegraph reported, doubts have been cast as to whether the long-running 2% mark can be reclaimed.
Markets, meanwhile, see interest-rate cuts fueling the fire in 2025, including at the Fed’s October meeting next week.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Source: https://cointelegraph.com/news/bitcoin-price-6x-2026-m2-supply-boom-covid-19-comparisons?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
