BITCOIN SELLING PRESSURE MAY EASE AS M2 MONEY SUPPLY TURNS POSITIVE 

Bitcoin’s selling pressures may soon diminish as the year-over-year M2 money supply has turned positive for the first time since November 2022—a development considered a bullish indicator for the cryptocurrency.

Glassnode, a crypto analytics firm, observed a consistent sell-side pressure in Bitcoin throughout April, as detailed in their May 2 post on social media platform X. Despite this, Bitcoin’s price saw a significant drop of 9.75% over the past 30 days, with a recent price of $59,586, as per CoinMarketCap.

However, the M2 money supply, which includes all cash and short-term bank deposits in the U.S., shifted positively on May 1 on a year-over-year basis. This increase in money supply is typically viewed by investors as a cue to shift focus to assets that perform well during periods of high inflation.

Historically, the crypto markets, including Bitcoin, have tended to outperform traditional financial markets following an increase in the global M2 supply.

This recent positive change in the M2 money supply has led crypto traders to be optimistic about Bitcoin’s future price movements, especially since the supply metrics had been negative since November 2022.

Professional trader and author Oliver L. Velez, sharing his bullish stance on May 2 on X, advised his followers to prepare for significant market movements and to view any price dips as buying opportunities.

In related comments, the crypto trading account InvestAnswers expressed excitement about the potential surge in the M2 money supply and Bitcoin’s prospects on May 3.

Raoul Pal, in a statement back in October 2023, expressed his enthusiasm for global M2 trends, highlighting times when Bitcoin typically outperforms other major indexes and becomes extremely influential in the market.

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