Bitcoin (BTC) is increasingly mirroring gold’s historic price performance and the trajectory of the global M2 money supply, prompting crypto analysts to forecast a potential major rally for the world’s leading cryptocurrency.
In an X post shared earlier today, crypto analyst Jelle shared the following chart that reveals a recurring pattern – gold tends to lead Bitcoin, which subsequently “catches up” in price action. This relationship underscores the growing perception of BTC as digital gold.
Historically, Bitcoin’s price movements have aligned with those of gold, driven by similar macroeconomic dynamics such as inflation, expansive monetary policy, and investor demand for scarce assets. As gold continues to rally amid rising global liquidity and geopolitical tensions, Bitcoin appears to be following suit.
For the uninitiated, the global M2 money supply refers to the total amount of money circulating in the economy, including cash, checking deposits, and other similar monetary instruments. An increase in M2 often signals monetary expansion, which can lead to inflation and push investors toward assets like gold and Bitcoin as hedges.
This occurs when a short-term moving average (MA), typically the 50-day MA, crosses above a long-term average, such as the 200-day MA. The golden cross is widely regarded as a bullish indicator and may signal further upside.
