Bitcoin's price could see a dramatic sixfold increase, potentially reaching $500,000 by 2026. This optimistic forecast is driven by a significant boom in the global M2 money supply, drawing parallels to the conditions observed during the COVID-19 pandemic. Analysts suggest that if Bitcoin's reaction mirrors its performance following the 2020 monetary expansion, substantial gains are on the horizon.
Key Takeaways
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A substantial increase in global M2 money supply, reminiscent of the COVID-19 era, could propel Bitcoin to $500,000.
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Bitcoin experienced a sixfold price increase after the global money printing spree in 2020.
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The current M2 surge occurs as central banks are lowering interest rates amidst persistent inflation.
Bitcoin's Potential Sixfold Rise
Analysis from Jesse Myers, co-founder of Onramp Bitcoin, highlights that the global M2 money supply has experienced its largest jump since the onset of the COVID-19 pandemic. This expansion, currently around $137 trillion, has increased by $8 trillion in just six months. Myers points out that gold has already reacted positively to this trend, and Bitcoin appears to be lagging, much like it did in 2020.
In late 2020, following a significant M2 supply increase, Bitcoin saw a sixfold rally between the fourth quarter of 2020 and the first quarter of 2021. If a similar pattern were to repeat, albeit with a delay, Bitcoin could surpass the $500,000 mark by 2026. The US M2 supply has also recently hit an all-time high, exceeding $22 trillion.
M2 Supply and Inflation Concerns
Asset manager Lawrence Lepard echoed the bullish sentiment, predicting a classic knock-on effect on Bitcoin from the M2 trend. He described M2 as the "real rate of inflation," dismissing central bank inflation targets like the US Federal Reserve's 2% goal. With central banks cutting interest rates, as anticipated for the Fed's October meeting, the ongoing monetary expansion is seen as a catalyst for Bitcoin's potential "launch."
Sources
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Can Bitcoin Follow Global M2 Money Boom to Pass $500,000?, Cointelegraph.
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Bitcoin price to 6X in 2026? M2 supply boom sparks, One News Page.
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