Let's cut to the chase. We know you’ve come because you’re just as curious as you are skeptical, or maybe even a believer already — we don’t care. I’m quite sure that a return to the $100,000+ level and beyond is not only possible. Well, it’s unavoidable, and here’s how. I’m here to tell you why you need to be ready. This isn’t a fly-by-night, get-rich-quick scheme – it’s business as usual once you decide to adapt to a major transformation in the financial ecosystem.
M2's Message: Liquidity Drives Bitcoin
Forget the political posturing, the hyperbole, the memes and the multi-day Twitter spats. The truth is found elsewhere, in global liquidity … namely, the M2 money supply. As Bitcoin Magazine Pro Lead Analyst Matt Crosby previously noted, there’s an extraordinary correlation between Bitcoin’s price and global M2. This inverse relationship usually goes beyond 84%. What does this mean? In short, when the world’s liquidity increases, Bitcoin usually goes with it.
Think of it like this: M2 is the tide, and Bitcoin is a boat. The boat rises with the tide, as you can see from this aerial view. Right now, the tide is coming in.
This isn't just about Bitcoin. The key to global correlations One further piece of Crosby’s analysis is that the S&P 500 has even better correlations (about 92%) with global liquidity. That is to say, the same macro forces fueling Bitcoin’s rise are fueling a broader rally in risk-on assets. In other words, quantitative easing isn't just inflating the price of crypto; it's inflating everything. This is the true elephant in the room that no one wants to talk about.
Remember 2017? If you were part of the crypto ecosystem back then, you recall the excitement and enthusiasm. The feeling that anything was possible. It wasn't just magic internet money. It was driven by a bubble much like the one we now see, a simultaneous explosion in global liquidity.
- There's a roughly 56-60 day lag between M2 increases and Bitcoin price movement.
- This isn't magic; it's the time it takes for newly printed money to trickle down into the markets.
Echoes of 2017: History Rhymes
The present macroeconomic state of affairs is starting to look eerily similar to that of early 2017. The current rate of global liquidity expansion is accelerating again. We’re witnessing the opening acts of what could prove to be a classic encore, and shocked barely describes this year’s surprise outcome.
This isn't about blindly chasing past performance. It’s ultimately about seeing the bigger picture and identifying the forces working behind the scenes.
Here's where things get real. This is why central banks—and not just the Federal Reserve—are caught in a trap. They're damned if they do and damned if they don't. If they go too far with their monetary-on-mission-statement and tighten too quickly, they will cause their own recession. If they ease, they risk fueling inflation. It’s an injustice for you to even be placed into this situation.
| Factor | 2017 (Early) | 2024 (Now) |
|---|---|---|
| Global Liquidity | Expanding | Expanding |
| Bitcoin Sentiment | Cautiously Optimistic | Cautiously Optimistic |
| Regulatory Clarity | Low | Increasing |
If history is our guide, they will come down on the latter nearly every time. Then, when the markets begin to shake, those printing presses will be cranked up once more. And when they do, Bitcoin will almost certainly be one of the biggest beneficiaries.
Crosby arrives at this bullish Bitcoin price target of $108,000 by June 2025 under the continued assumption of this liquidity expansion continuing. We know that’s a bold claim, but it’s grounded in data, not wishful thinking.
Prepare For Monetary Policy Inevitability
The anxiety around missing out is real. Keep in mind this isn’t a get-rich quick scheme. It’s not. It’s about preparing yourself for a future where Bitcoin is an even bigger part of the global financial system.
Of course, there are risks. A potential global recession or major equity market correction might intervene to spoil this bullish scenario. In all of those examples, Bitcoin’s decentralized nature is what makes it special. Its scarcity makes it a more attractive store of value than traditional assets.
Ultimately, the decision is yours. So you can write this off as another crypto hype cycle. Or you can prepare yourself for what I think is an inevitable rush to $100,000 and higher. Choose wisely. Your overall financial security in the years to come could hinge on it.
What you should do right now:
- Do Your Own Research: Don't just take my word for it. Dive into the data. Understand the relationship between M2 and Bitcoin. BitcoinMagazinePro.com is a great place to start, though of course, do your due diligence.
- Consult a Financial Advisor: This isn't financial advice. I'm just sharing my perspective. Talk to a professional who can help you assess your risk tolerance and develop a sound investment strategy.
- Prepare, Don't Panic: Don't FOMO in at the top. Develop a plan and stick to it. Dollar-cost averaging is your friend.
The anxiety around missing out is real. But remember, this isn't about getting rich overnight. It's about positioning yourself for a future where Bitcoin plays an increasingly important role in the global financial system.
Of course, there are risks. A global recession or a significant equity market correction could derail this bullish scenario. But even in those scenarios, Bitcoin's decentralized nature and limited supply could make it a more attractive store of value than traditional assets.
Ultimately, the decision is yours. You can dismiss this as another crypto hype cycle, or you can prepare for what I believe is the inevitable surge to $100,000 and beyond. Choose wisely. The future of your financial well-being might depend on it.
