Bitcoin Slips Over 13% in a Week: Why China Could Be the Key to Its Next Rally
Despite a recent 13.3% drop, Bitcoin's next rally may be fueled by China's surging M2 money supply, contrasting with stagnant US liquidity.Summary
Bitcoin (BTC) recently experienced a significant downturn, sliding over 13% in a week and trading around $105,317, while US M2 money supply remains stagnant. However, analysis suggests that expanding liquidity in China could drive the next major rally. Joao Wedson of Alphractal noted that China's M2 money supply has ballooned to $24.9 trillion more than the US equivalent and continues to climb. Historically, when China's M2 overtakes the US figure, Bitcoin's price ascends. Furthermore, analyst Shanaka Anslem Perera suggests Bitcoin has shifted from being driven by its halving schedule to being governed by macroeconomic liquidity cycles. Therefore, the expanding Chinese liquidity may inject structural demand into Bitcoin markets, positioning the East as the key driver for BTC's future price action.
(Source：BeInCrypto)