ChainCatcher news reports that since mid-2025, Bitcoin has begun to decouple from the global M2 money supply (which includes the total amount of money in circulation such as cash, demand deposits, time deposits, etc.), and this trend has become more pronounced in early 2026. Historically, the correlation between the two has been the basis for bullish forecasts, but now analysts are seriously divided on this phenomenon.
Fidelity Digital Assets maintained an optimistic outlook in its January report, believing that as the global monetary easing cycle begins and the Federal Reserve’s QT plan ends, the M2 growth rate will continue to rise in 2026, which is positive for Bitcoin prices. Analyst MartyParty predicts that Bitcoin prices will rebound to catch up with M2 growth.
However, Mister Crypto points out that decoupling of Bitcoin price from M2 usually signals a market top, followed by a 2-4 year bear market. Capriole Investments’ founder believes that the decoupling reflects the risk of quantum computing cracking Bitcoin’s encryption. Despite the uncertainty, investors still view Bitcoin as a long-term store of value.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
BlackRock Transfers 12,080 ETH and 113 BTC to Major Institutional Custodian
Gate News message, April 24 — BlackRock transferred 12,080 ETH worth approximately $27.94 million through its Ethereum spot ETF (ETHA) and 113.342 BTC worth $8.81 million through its Bitcoin ETF (IBIT) to a major institutional custodian address approximately two hours ago (April 24), according to
GateNews15m ago
Bitcoin Holdings by Long-Term Investors Hit Record High in Q1 2026, Up 69% Despite 22% Price Decline
Gate News message, April 24 — According to a report by ARK Invest, Bitcoin holdings by long-term investors, known as "conviction buyers," reached a record high in the first quarter of 2026. BTC holdings by this investor group increased from 2.13 million to 3.6 million, representing a 69% increase in
GateNews40m ago
Crypto Trader Says Bear Market Trend Rejected Bitcoin Twice, BTC Prepares for Bullish Narrative Shift
Crypto trader says bear market trend rejected Bitcoin twice.
Bear and bull analysts continue to debate the many possible outcomes.
BTC prepares for bullish narrative shift.
The price of Bitcoin BTC continues to trade above the now critical support level of $76,000, giving rise to
CryptoNewsLand1h ago
Bitcoin Liquidation Levels: $16.66B Short Squeeze at $81,478, $16.04B Long Liquidation at $73,945
Gate News message, April 24 — According to Coinglass data, if Bitcoin breaks above $81,478, the cumulative short liquidation strength across major centralized exchanges would reach $1.666 billion.
Conversely, if BTC drops below $73,945, the cumulative long liquidation strength across major CEXs wou
GateNews2h ago
Iran Collected Strait of Hormuz Toll in Foreign Currency, Not Bitcoin
Iran's central bank announced that the first transit fee collected from ships passing through the Strait of Hormuz was paid in "cash foreign currency," contradicting earlier reports that the toll would be collected in cryptocurrency. The payment was deposited directly into bank accounts in foreign c
CryptoFrontier2h ago
