Bitcoin has once again surpassed the $120,000 mark, which occurred without intervention from the U.S. Federal Reserve. This rise raises interest as it is driven by the growth of the M2 money supply.
Bitcoin and Economic Indicators
Bitcoin reached $120,000, surprising many analysts. This increase occurred without traditional factors such as changes in interest rates or liquidity injections from central banks. In this case, Bitcoin's rise seems directly linked to the increase in the M2 money supply.
Growth of M2 Money Supply
The M2 money supply, which includes cash and easily convertible assets, serves as an important indicator for investors. Its consistent growth signals an expansion of the money supply even without an official policy change from the Fed. This creates conditions for increased liquidity in financial markets, positively affecting Bitcoin's price.
Long-term Investor Optimism
Despite the volatility and noise surrounding the cryptocurrency markets, long-term holders remain confident. Many experts believe that the $120K mark is just the beginning of a larger upward trend. A combination of influencing factors creates a favorable backdrop for further growth.
Thus, the recent rise of Bitcoin confirms the convergence of favorable macroeconomic conditions and increasing investor interest. Bitcoin continues to play an important role as a store of value.
