M2 Money Supply Predicts When Bitcoin Price Will Hit All Time High

The correction that Bitcoin (BTC) suffered over the past 24 hours has triggered conversations around its correlation with the M2 Money supply. Analysts like Raoul pal and Abra CEO are using Bitcoin Vs M2 money supply co-relation to predict Bitcoin price. 

Bitcoin to $130k in August/September This Year?

Abra Global CEO Bill Barhydt shared his analysis on the rising Bitcoin Vs M2 money supply trend via via his X account. The consensus is that with the growth in the global money supply, risk-on assets like BTC benefit significantly. The concept is simple: the more money in circulation, the more devalued fiat is, granting emerging hedges like Bitcoin more value.

According to him, most trending charts predict a short-term bearish outlook. He most likely highlighted the likelihood of Bitcoin price dropping to $100,000 in the coming days before it pushed to a new all-time high of $130,000 in August/September.  

As Barhydt noted, there are many reasons to believe this outcome. Though silent on these reasons, the institutional adoption, like the recent Strategy purchase of 4020 BTC, is helping to drive scarcity.

No matter the price direction, the Abra CEO believes Bitcoin will take advantage of its status as the mother of all liquidity. The conversation around the Bitcoin and M2 money supply correlation is controversial. While some believe the M2 liquidity does not always determine the BTC price direction, some maintain that the pattern has never failed when profiled on longer timeframes.

Despite the 8% BTC price correction, which dropped to $103,000 overnight, the top coin is just halfway through the bullish cycle of the money supply. At least for the next four weeks, the top coin will likely continue its upward surge.

Bitcoin Price History And M2 Money Supply

Despite the drawdown the coin has recorded in the past 24 hours, it is still conforming to its historical trend. May is historically a bullish month for Bitcoin, with an average growth rate of 19%. 

Per Cryptorank data, BTC has maintained a 10% upsurge thus far this month, with the latest selloff not impacting long-term investors. At the time of writing, the coin was changing hands for $104,402.78, up marginally by 0.17% in 24 hours.

As reported earlier by CoinGape, Bitcoin hit an ATH of $111,970 on May 22. This latest selloff is its most significant correction since then. However, the monthly chart from Cryptorank shows a relatively bullish June ahead.

To align with the M2 Money Supply projections, if history aligns, BTC may bounce back from its latest selloff. As of mid-2025, global M2 is at all-time highs (~$111T+). Economies (especially the U.S. and China) are turning dovish again due to recession risks and debt servicing needs. If M2 keeps rising, Bitcoin historically follows—with a lag.

Bitcoin Is Now Globally Accepted

It is worth noting that the perception of BTC is changing beyond an asset. Private and public companies pushing to hold to one nation-state are now profiling. At the moment, at least three States in America have passed Bills to add BTC as a strategic reserve asset.

Amid the growing development, Senator Cynthia Lummis has confirmed that Congress will focus on the BTC reserve bill after the GENIUS Act stablecoin Bill is passed. These moves are coordinated to boost the attractiveness of the top coin.

However, not every corporation is sold on the Bitcoin dream. Earlier, the Meta board voted against BTC as a reserve asset, joining Microsoft. Despite this setback, more firms like GameStop have added Bitcoin to their balance sheet.