Hello!
Zerohedge shared a chart today that is very important if you follow Bitcoin and global markets. The tweet say: “something is soaking up a LOT of liquidity. In other news, global M2 just went absolutely vertical… and BTC fair price is 250K.”
For people not so familiar, M2 is the measure of money supply (cash, savings, deposits...)
When M2 goes higher, it means central banks and governments are injecting liquidity into the system. More money everywhere chasing the same or less goods and assets. And in the end, it usually means higher inflation and higher asset prices.
Now, the chart shows a crazy divergence. Global M2 liquidity has exploded up vertical, but Bitcoin price is still lagging behind. In past cycles, Bitcoin usually follow M2 with some delay, because Bitcoin is a liquidity sponge — when money is cheap and abundant, it flows to scarce assets like BTC. That is why Zerohedge says the “fair price” of Bitcoin should be around $250,000, if we align it with current liquidity levels.
So the big question: why Bitcoin is not there yet? Some say regulatory fears, some say ETFs flows are slowing, others point to traders waiting for rate cut confirmation. But one thing looks clear — liquidity is the fuel, and the tank is already full. At some point, Bitcoin may catch up fast.
This is also a warning. If liquidity is going vertical, the traditional fiat system is under more pressure. Savers lose value, debt becomes cheaper, and people look for protection. Gold, real estate, and Bitcoin all benefit from this environment.
Maybe today Bitcoin feels slow, boring, even stuck around 110–120K. But if M2 continue in this vertical trend, history say Bitcoin will not stay behind. Like a spring, it will eventually snap to a new fair value. And if Zerohedge is right, that number could be closer to 250K than most people imagine.
Liquidity never sleeps. And Bitcoin, sooner or later, respond! Enjoy!
Posted Using INLEO