Bitcoin Price Prediction: Analyst Sees New ATH Within 3 Months
Bitcoin's Potential Surge to New Heights
Cryptocurrency analyst Michael van de Poppe has shared insights suggesting Bitcoin (BTC) could reach a new all-time high (ATH) within the next three months. The prediction is based on a chart highlighting the correlation between Bitcoin's price and the M2 money supply, which has been on an upward trajectory. The M2 supply, measuring the total money in circulation, has reached $120 trillion, with its growth potentially signaling a BTC price surge.
M2 Supply and Bitcoin Correlation
The chart, provided by Julien Bittel of Global Macro Investor, shows a historical correlation between M2 supply and Bitcoin's price. Earlier this year, Bitcoin's price decline coincided with a dip in M2, but the two have since moved in tandem. Van de Poppe suggests that if this correlation continues, Bitcoin could see a significant rally. A rising M2 supply is expected to precede Bitcoin's price increase, potentially driving it to new heights.
Strategic Bitcoin Acquisitions
Meanwhile, Michael Saylor's company, Strategy (formerly MicroStrategy), has made another significant Bitcoin purchase, acquiring 3,459 BTC worth approximately $285.8 million. This brings Strategy's total Bitcoin holdings to 531,644 BTC, valued at over $45.5 billion. Saylor's aggressive accumulation has drawn criticism, with some, like entrepreneur Vinny Lingham, warning that Strategy could become the "Federal Reserve for Bitcoin," potentially centralizing ownership and contradicting Bitcoin's decentralized ethos.
Market Implications and Risks
If M2 supply and Bitcoin continue their upward trend, van de Poppe predicts a weaker U.S. dollar, a stronger Chinese yuan, and a potential decline in gold prices. Additionally, altcoins may benefit from Bitcoin's rally. However, concerns about centralization and the concentration of Bitcoin holdings in the hands of a few large entities could pose risks to the network's decentralized nature.
With Bitcoin currently trading at $85,584, the combination of macroeconomic trends and strategic investments could set the stage for a historic price movement in the coming months.
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