Bitcoin (BTC) Price Correlation with Global Money Supply (M2) Signals a Possible Massive Correction

This relationship hints that Bitcoin could experience a steep drop to $20,000, an almost 80% plunge from its current valuation.

Bitcoin’s (BTC) price could be set for a massive drop to as low as $20,000 if its historical correlation with the global money supply continues to hold.

According to an analysis by financial commentary platform The Kobeissi Letter in an X post on December 21, Bitcoin’s price could experience a steep decline of almost 80% from its current valuation if this relationship persists.

The platform highlighted that Bitcoin prices have shown a lagged correlation with the global money supply, typically trailing by about 10 weeks. This trend aligns with the recent peak in the M2 money supply, which reached a record $108.5 trillion in October. However, the supply decreased by $4.1 trillion to reach $104.4 trillion as of December, marking the lowest level since August.

Interestingly, this decline coincides with Bitcoin’s recent setback, which saw the cryptocurrency岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可眺望岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可眺望岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可眺望岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可眺望岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可眺望岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可眺望岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可眺望岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可眺望岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可眺望岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可眺望岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可眺望岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可眺望岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可眺望岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可眺望岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可眺望岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可眺望岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可眺望岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可眺望岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可眺望岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可眺望岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可眺望岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可眺望岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可眺望岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可危岌岌可眺望岌岌可危岌岌可危岌岌可危岌岌可危