Cryptocurrency exhibits significant strong resurgence akin to 2020.
Headlines:1. Crypto markets’ focus back on Bitcoin, analysts hint at impending rally!2. Bitcoin vs Gold: The daring dance of digital gold and the yellow metal!3. M2 Money Supply bringing the heat - Bitcoin, the beneficiary?4. Navigating 2025's crypto market volatility: Friend or Foe?5. Smart Money's model predicts Bitcoin price surge to $135K in the next three months!6. Technical indicators point toward Bitcoin's readiness for a rally - What's the buzz?7. Not just another bear market: The story of Bitcoin's next big breakout!
As the crypto markets rekindle their fascination with Bitcoin, analysts are quick to suggest that recent developments could signal a spectacular rally reminiscent of the one before 2020.
Let's break it down:
Gold's Hunger for Dominance:Swan's report dated May 3rd asserted, "The chart that makes Bitcoin optimists crack a smile hasn't been this positive since 2020." Investors traditionally view gold, considered a safe haven, as a benchmark. Since the New Year, gold has rallyed a staggering 30% and surpassed $3,400 an ounce on April 22nd. However, gold retreated by 3% this week, while Bitcoin saw a 4% spike. Swan analysts claim, "When Bitcoin outperforms gold, this often heralds the beginning of a larger move," hinting at BTC's historic surge from $70,000 to $108,000.
M2, Bitcoin's Secret Weapon?The second signal comes from increased global money supply. Statistics from the St. Louis Fed indicate an M2 money supply increase by 4% over the past 12 months, the first such increase since 2021. This growth in liquidity often generates financial ease that benefits digital currencies like Bitcoin. According to analysts, "Major Bitcoin rallies have always originated from expanding money supply, loose monetary policies, and a dip in trust in fiat currency, setting the stage for Bitcoin."
The Volatility FactorAs market volatility begins to approach March 2020 levels, uncertainty breeds. Despite a dip in the CBOE Volatility Index (VIX), the market remains cautious. Analyst Timothy Peterson points out that if the VIX drops below 18, "risk appetite" might increase, potentially creating a constructive climate for assets like Bitcoin. Peterson's model, with a 95% accuracy rate, forecasts a Bitcoin price of $135,000 in the next three months.
Technical Data: The Necessary Piece of the PuzzleSwan analysts note that the MVRV ratio (Market Value to Realized Value) has risen above 1.74, a historically bullish sign for Bitcoin. Additionally, selling pressure in the $90,000-100,000 range has weakened, and weak hands are exiting the market. Bitcoin's price recently surpassed its cost basis, with Peterson's analysis suggesting each 25 basis point increase in interest rates could translate to an approximate 10% rise in Bitcoin's value. Given the possibility of a 75 basis point interest rate cut in the upcoming 1-2 months, reaching Bitcoin's $130,000 level looks feasible.
The past month has seen Bitcoin gain more than 15%, and it tested $98,000 on Friday, marking its highest level since February 21.
The focus on Bitcoin in the crypto markets might be a prelude to another rally similar to the one observed before 2020, as hinted by analysts. This potential surge could be rooted in the expanding global money supply, as increasing M2 money supply often benefits digital currencies like Bitcoin due to the connection between major Bitcoin rallies and loose monetary policies.
Investing in Bitcoin, enabled by block chain technology, could offer promising returns, as Swan analyst's model predicts a price surge of $135K in the upcoming three months, supported by both technical data and the current market conditions.
