Crash Signal Proven by 3 Past Cycles… Bitcoin's True Bottom Is Still Far Off

▲ Bitcoin (BTC) Crash/ChatGPT Generated Image ©

A shocking analysis has emerged, overturning the market's conventional wisdom that the correlation between global broad money supply (M2) and Bitcoin (BTC) has broken. It's a terrifying warning that while the leading asset first peaks and then consolidates, M2 belatedly reaches its peak, and at that very moment, a true crash market begins.

According to crypto news outlet Bitcoinist on April 24 (local time), virtual asset analyst KillaExBT diagnosed that the correlation between the two indicators is still perfectly functional, based on an analysis of three past bull and bear market cycles. The market recently concluded that the link between Bitcoin's price and the M2 indicator had broken due to a decoupling phenomenon, but this is a misconception stemming from a complete misunderstanding of how the correlation works.

The analyst pointed out that while investors commonly believe that M2 first peaks, followed by Bitcoin reaching its peak, the actual historical trend has unfolded in the opposite way. While Bitcoin's price first reaches its peak and enters a consolidation phase, M2 continues to draw an upward curve. Subsequently, the pattern has repeated where, the moment M2 finally reaches its peak, Bitcoin plunges into a bear market, an endless downward trend.

He noted that the current M2 indicator has not yet peaked and continues to trend upwards. If this analysis is correct, the current price decline experienced by the leading asset is not yet over. Rather, a full-scale price crash for Bitcoin could begin precisely when the M2 indicator stops rising and turns downwards.

The analyst emphasized that it is highly unlikely this pattern, which has repeated without a single deviation in the past three market cycles, will be an exception this time. Therefore, investors should closely monitor when the M2 indicator will reach its final peak and thoroughly prepare for the upcoming shock before Bitcoin confirms its true bottom.

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