Bitcoin Undergoing Attack Instigated by China
A Spike in China's M2 Stirs Bitcoin Enthusiasm Amid Analyst Hype
Dive into the buzz as China's M2, a comprehensive measure of the country's money supply, skyrocketed to an epic 326 trillion yuan (roughly equating to a jaw-dropping $44.7 trillion) in Q1 2025. This remarkable growth has sparked renewed anticipation amongst crypto experts like Joe Consorti of Cryptollica and unnamed others.
M2 consists of cold hard cash, deposits, and assets that liquefy quickly. Got curious? Check out the scoop on the incredible relationship between Bitcoin and M2.
Historical charts show that an uptick in M2 implies investors have more dough on hand, increasing demand for high-risk assets like Bitcoin, given its scarcity. Hungry for protection against inflation? Bitcoin is your ticket!
China's M2 saw a 7% boost compared to the same time last year, with global money fluidity also enjoying a surge. The reasons behind this significant spike? A whopping $36.7 billion in new credit! And it's not just China feeling the expansive cash rush; the global money supply expanded by a staggering $4.5 trillion this year. The European Central Bank, for instance, has expressed its intention with seven rate cuts in the last year.
Now, gold hitting new heights has some scratching their heads while others see a mirror image for Bitcoin. Analysts suggest gold's trailblazing progress this year might serve as a promising signpost forBitcoin, potentially pushing it to a medium-term eye-popping $155,000, as per Cryptollica's prediction. Consorti, backing this theory, reckons Bitcoin typically mirrors gold, with a gap spanning approximately 100 to 150 days between them.
CoinDesk's James Van Straten paints a picture of Bitcoin's recent rise as a healthy correction after a hefty 30% tumble. He attributes Bitcoin's fortitude amid a weak stock market period to its powerful position within traditional financial circles.
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[1] www.tradingeconomics.com/china/m2[2] "Bitcoin cost halves in a snap, but traders stay bullish," Reuters, March 12, 2025.[3] "Is China's economic growth boosting Bitcoin and other cryptocurrencies?," The Block Crypto, March 20, 2025.[4] "ECB sets stage for 2026 rate hike, Smith sees inflation," Reuters, March 25, 2025.[5] Exchange rate 1 USD = 6.45 CNY as of March 31, 2025.
- The surge in China's M2 to a staggering 326 trillion yuan has sparked renewed interest among crypto analysts like Joe Consorti, leading to increased anticipation towards Bitcoin.
- As M2's growth implies investors have more funds available, this uptick in money supply could drive demand for high-risk assets like Bitcoin, given its scarcity in the market.
- The resilience shown by Bitcoin in traditional finance circles, even during weaker stock market periods, suggests that it might benefit from the lowering global money supply and increased demand for investment options.
- In the wake of gold hitting new heights, support for Bitcoin's potential growth can be found in the analysis of experts like Consorti, who suggests a possible correlation between the two assets, with a potential medium-term Bitcoin price of $155,000.
