The global M2 index has softened, partly reflecting the dollar\u2019s robust performance. Despite that drag, Bitcoin appears to be following the general liquidity blueprint it has tracked throughout this cycle, suggesting Bitcoin\u2019s price still hinges on major macro forces like central bank expansions and contractions. \u201cWhile this relationship isn\u2019t a direct cause-and-effect mechanism, it continues to provide a useful macro framework,\u201d Consorti writes.<\/p>\n
![\"Bitcoin](\"https:\/\/www.newsbtc.com\/wp-content\/uploads\/2025\/03\/bitcoin-vs-M2.jpg?resize=1023%2C638\")
<\/p>\n
He added: \u201cThe takeaway? Bitcoin remains the ultimate monetary asset in a world where money supply, balance sheet capacity, and credit are perpetually expanding. As global money supply expands, bitcoin tends to follow it, at least directionally. But this cycle is seeing additional variables that make M2 a less reliable standalone indicator, such as the US dollar being historically strong, creating a drag on global M2 denominated in USD, and more accurate measures of money supply and liquidity coming onto the scene.\u201d<\/p>\n
Although macro conditions are exerting familiar pressure, the market\u2019s reaction to the SBR announcement has been perplexing. After the US President Donald Trump formally declared plans to accumulate Bitcoin through a \u201cbudget-neutral\u201d mechanism, the price tumbled 8.5% in just under a week. Consorti described the sell-off as \u201can irrational reaction highlighting major inefficiencies in pricing Bitcoin\u2019s geopolitical importance.\u201d<\/p>\n
Executive Order 14233 mandates Treasury and Commerce officials to grow America\u2019s BTC holdings\u2014currently at 198,109 BTC\u2014without new taxpayer cost or congressional oversight. This is a stark contrast to previous government-level adoptions, such as El Salvador\u2019s legal tender move, which coincided with a surge in Bitcoin\u2019s price. Consorti attributes the disparity to short-term profit taking and a \u201csell-the-news\u201d mentality, adding that \u201cthe magnitude of the selloff indicates a complete failure to price in the long-term implications.\u201d<\/p>\n
Despite the SBR-related dip, Bitcoin\u2019s technical signals suggest a possible local bottom forming. The cryptocurrency dipped to $77,000 before bouncing back, filling a low-volume gap in the $76,000\u2013$86,000 range. Buyers seized on the retracement, creating two hammer candlesticks on the weekly chart.<\/p>\n
Hammer candlesticks typically point to a reversal, especially when they appear at cycle-defining support levels. According to Consorti, \u201cHistorical precedent suggests that Bitcoin forms these patterns at cycle turning points\u2026 The last time we saw this exact price structure was during the tail end of Bitcoin\u2019s summer 2024 consolidation, two months before it surged from $57,000 to $108,000.\u201d<\/p>\n
A notable trend amid these price fluctuations is Bitcoin\u2019s rising dominance, even during periods of market contraction. ETH\/BTC recently sank to 0.0227\u2014its lowest since May 2020\u2014indicating intensifying skepticism toward altcoins. Meanwhile, institutional demand for Ethereum has likewise slumped, as evidenced by a 56.8% drop in the asset under management (AUM) ratio for Ethereum vs. Bitcoin.<\/p>\n
\u201cThis cycle belongs to Bitcoin, and all future cycles will only further cement this reality,\u201d Consorti asserts. He suggests altcoins are fighting an uphill battle as Bitcoin-centric narratives gain global traction.<\/p>\n
At press time, BTC traded at $82,875.<\/p>\n
![\"Bitcoin](\"https:\/\/www.newsbtc.com\/wp-content\/uploads\/2025\/03\/BTCUSDT_2025-03-14_10-51-14.png?resize=3628%2C1605\")
<\/p>\n","protected":false},"excerpt":{"rendered":"
Bitcoin\u2019s tight correlation with global M2 has returned to the spotlight, suggesting that broader monetary conditions remain a key force behind the cryptocurrency\u2019s market trajectory. Recent price action shows Bitcoin converging with M2\u2019s downward drift\u2014mirroring roughly a 70-day lag. This cyclical movement highlights Bitcoin\u2019s ongoing responsiveness to fluctuations in liquidity, even as other fundamental factors,…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[22,28,29,32,33,34,1900,1901],"class_list":["post-3508","post","type-post","status-publish","format-standard","hentry","category-bitcoin","tag-bitcoin","tag-bitcoin-news","tag-bitcoin-price","tag-btc","tag-btc-news","tag-btc-price","tag-m2","tag-m2-global-money-supply"],"_links":{"self":[{"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/posts\/3508","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/comments?post=3508"}],"version-history":[{"count":0,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/posts\/3508\/revisions"}],"wp:attachment":[{"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/media?parent=3508"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/categories?post=3508"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/tags?post=3508"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}