Bitcoin (BTC), is an electronic currency. “completely mispriced” New analysis suggests that global liquidity will be at a lower level in 2026.
Important points
- The Bitcoin price has fallen to levels that have never been seen before in relation to the global liquidity.
- The M2 Money Supply Correlation calls for an “aggressive” BTC Price Rebound
- The critics claim that BTC’s four-year price cycle takes precedence over the M2 currency.
BTC Price Analysis “massively below” Cash value
It is a good idea to get in touch with someone who can help you. X post RobynHD is a cryptocurrency trader on YouTube. She re-focused the attention on the BTC market action in relation to global M2 money.
“Bitcoin is currently trading at a level that has historically almost always been erroneous, because it’s massively below its global liquidity fair value,” He wrote.
BTC/XAU Ratio with M2 Fair Value Data Source: RobynHD/X
A chart by Bitwise European’s head of research Andre Dragosch compares the BTC to gold ratio with its true liquidity value, compared with global M2, which is at an all-time-high.
Bitcoin’s positive correlation with M2 has been strong in the past. BTC/USD have historically performed better during periods of prolonged money supply growth, even if their phases don’t exactly match.
BTC/XAU has fallen by 2 sigma below the line of fair value. This is a “negative” ratio. “Z-score.”
“If the BTC/liquidity relationship is still intact, then BTC is currently being completely mispriced,” RobynHD continued.
“A Z-score near -2 has never occurred historically and points to the point of maximum mispricing.”
BTC/XAU ratio versus Global Liquidity Z-score. Source: Adrián Treviño/X
An alternative to the M2 case is an “aggressive repricing” Bitcoin’s attempt to catch-up with global trends is the next step. Next event as Bitcoin tries to catch up with global trends Cointelegraph reportedThe crypto market has also been diverging from the stock markets, which have continued to reach record highs in this month.
Bitcoin M2 Correlation Argument “flawed”
In the current macroeconomic climate, M2 has its detractors.
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Julio Moreno is the head of Research at CryptoQuant’s onchain analysis platform. called The Bitcoin-M2 Correlation “flawed from the design stage.”
“There is no daily M2 data, and most of the cbio in that series is China, whose M2 is basically always increasing,” He was arguing.
Other people point out that the timing of previous bear crypto markets in 2022, for example, is inconsistent.
“In 2022, M2 topped after Bitcoin hit its real bottom around $18K. If you’d waited for M2 to peak, you would’ve sold the lows,” Account Cryptic Trading noted Last year, I posted a X in a blog.
BTC/USD chart for the day with global liquidity data. Source: Crypto Trades/X
Rekt Captial, an analyst and trader at the time of the prediction, predicted BTC/USD would reach its peak well before M2’s current uptrend reversed. Its latest highs were in October.
“When Bitcoin peaked in its Bull Market in November 2021… Global M2 continued to increase for months, only topping out in April 2022,” He told X-Followers
“That’s 5 months after the Bitcoin Bull Market had ended.”
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Source: cointelegraph.com
