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FED Quietly Begins Money Printing, Spot Bitcoin Price Rises
In the intricate cryptocurrency landscape, one chart emerges as a beacon of hope for Bitcoin and its contemporaries. With the resurgence of money supply in the US, investors find themselves at a crucial moment. As printing presses produce fiat currency at a rapid pace, the specter of dollar devaluation looms ominously.
Analyzing the impact of the US money supply on the price of Bitcoin
The resurgence of the US M2 money supply presents a optimistic outlook for Bitcoin. An increasing M2 money supply traditionally correlates with a weaker US dollar, which subsequently encourages greater diversification into Bitcoin, ultimately driving up its price. Analysis of data from the Federal Reserve Board of Governors reveals a notable trend.
The peak of M2 money supply reached $21.722 billion in April 2022, gradually decreasing to $20.841 billion in March 2024. While this decline may seem modest, amounting to $881 billion or 4.06% over the over approximately two years, it marks the first decline of at least 2% since the Great Depression.
Considering Bitcoin’s reaction to previous increases in the M2 money supply, historical data suggests a bullish outlook for the cryptocurrency. The correlation between M2 expansion and the Bitcoin bull market reinforces the narrative that Bitcoin may be poised for another significant uptrend.
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Bitcoin Price Trends and Market Analysis
Bitcoin Price the movements indicate a period of consolidation within a broad descending channel. Recent market activity has seen the price tested once again against the $60,000 level. A breach of this level could potentially lead to the breakout of the descending channel, triggering a substantial decline towards the $52,000 support zone. O open interest of Bitcoin is +0.58% in the last 24 hours, currently valued at US$16.3 billion.
The Relative Strength Index (RSI), however, shows bullish sentiment, with values above 50% signaling momentum in favor of buyers. At $60,000 broken, the market would see even more upward pressure. As Bitcoin struggles to sustain its upward trajectory and reach new highs, bears have seized the opportunity to push prices lower, but clearly not for that long. Current market sentiment suggests a cautious approach, with investors closely monitoring key support and resistance levels for potential trading opportunities.
Bitcoin (BTC) Price Update
The current price of Bitcoin is $61,242.09, with a 24-hour trading volume of $21.1 billion. In the last 24 hours, the cryptocurrency has experienced an increase of 0.88%. Bitcoin is currently trading in the range of $61,081.39 and $60,565.44, with a market capitalization of $1.1 trillion.
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