Bitcoin (BTC) increasingly reflects Gold’s historic price performance and the trajectory of global M2 currency supply, prompting crypto analysts to predict potential major rally for the world’s leading cryptocurrencies.
Bitcoin after gold, M2 currency supply
In an X post shared earlier today, crypto analyst Jelle shared the following chart that reveals a recurring pattern—gold tends to lead Bitcoin and then “catch up” in price action. This relationship underscores the growing perception of BTC as digital gold.
Historically, Bitcoin’s price movements are consistent with gold’s price movements, driven by similar macroeconomic dynamics such as inflation, widespread monetary policy, and investor demand for scarce assets. As global liquidity and geopolitical tensions rise, gold continues to rally, and Bitcoin seems to follow suit.
Bitcoin’s reputation as a store of value has also attracted attention among institutions. Robert Mitchnick, head of digital assets at Blackrock, recently describe BTC is a “superior alternative” to gold, which is strongly recognized by the world’s largest asset manager.
Meanwhile, another analyst, Cryptogoos, Drew Note that BTC tends to follow the trend of shifting global M2 money supply. He noted that Bitcoin often lags behind the M2 increase by about two months, suggesting that cryptocurrencies may soon witness another rally.
For beginners, the global M2 money supply refers to the total amount of the economy circulation, including cash, check deposits and other similar monetary instruments. The increase in M2 usually marks currency expansion, which can lead to inflation and push investors to assets such as gold and Bitcoin.
From a technical point of view, BTC also shows signs of bullishness. In today’s X post, Titan, an experienced analyst at Crypto, noted that Bitcoin formed a golden cross on a four-hour chart.
This happens when the short-term moving average (MA) (usually 50-day MA) crosses the long-term average (such as 200-day MA). The Golden Cross is widely regarded as a bullish indicator and may further issue upside potential.
New ATH is possible, but support for decomposition risks still exist
Various indicators suggestion The BTC Rally is far from over. For example, the cryptocurrency Titan recently said BTC is The following Golden Ratio Multiplier, with a target of $130,000.
Similarly, crypto enthusiast killaxbt predict BTC price is $120,000 from mid-June to mid-June. However, there are some risks to monitor to avoid falling into a price crash.
Analyst warn If Bitcoin is below the critical support range of $97,000 to $99,000, it could trigger sharper corrections. At press time, BTC traded at $106,610, up 2.2% over the past 24 hours.
Featured images from Unsplash.com, charts from X and TradingView.com
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