Bitcoin Should see 'Aggressive Repricing' if M2 Correlation is Valid: Analysis
Cointelegraph
New analysis suggests Bitcoin is severely undervalued relative to global M2 money supply, pointing toward a potential aggressive price rebound.Summary
Analysis from crypto traders and researchers suggests that Bitcoin is currently experiencing historic mispricing, trading significantly below its fair value relative to global M2 money supply. By comparing the BTC/XAU ratio to global liquidity, experts note a negative 'Z-score' of nearly -2, which historically signals an extreme deviation that typically necessitates an 'aggressive repricing' to align with global trends. However, critics like Julio Moreno of CryptoQuant argue that the correlation is flawed due to data inconsistencies, while others note that previous market cycles have shown that Bitcoin often peaks and bottoms independently of M2 growth phases.
(Source：Cointelegraph)