Analysis: If Bitcoin maintains its correlation with the M2 money supply indicator, it may pull back 20-25%

CoinRank News: Joe Consorti, head of growth at Theya Bitcoin and Bitcoin analyst, said in a Nov. 26 X post that if Bitcoin continues to maintain its long-term correlation with the global cash and bank deposit money supply, it could fall back to $70,000, and so far, the correlation has been very accurate. We have to watch to see if BTC will continue to fall or stop and find support. Consorti noted in an X post the day before that Bitcoin has been tracking the global M2 indicator (an estimate of cash and short-term bank deposits) since September 2023 with a lag of about 70 days. The M2 money supply and its growth have historically correlated with previous Bitcoin bull runs. Bitcoin prices tend to rise along with the M2 money supply because increases in M2 usually signal inflationary pressures, prompting investors to seek riskier assets such as Bitcoin as a hedge against inflation. I dont want to alarm anyone, but if this continues, Bitcoin could see a 20-25% pullback, Consorti added. (Cointelegraph)