Bitcoin Outlook Improves as Money Supply Growth and Debt Pressures Rise

The increase in M2 money supply has reached a new high of $21.86 trillion. Investors are turning their attention to Bitcoin, viewing it as a potential beneficiary amid escalating financial pressures. The US national debt-to-GDP ratio has hit record levels, with net interest payments accounting for 20% of federal revenues, placing strain on the budget. Additionally, government expenditures exceed income. Analysts believe that the outlook for Bitcoin is improving due to historical correlations between M2 growth and Bitcoin prices. Typically, increases in M2 precede Bitcoin price rises by about 12 weeks. The abundance of liquidity fuels demand for Bitcoin as a store of value. Moreover, declining interest rates reduce the appeal of traditional investments. Bitcoin stands out as an asset that preserves and can even enhance its value, presenting an attractive alternative for investors.