The Future of Bitcoin is Under Suspicion: Analysts Predict the Possibility of Crashing to $25,000

Bitcoin (BTC) is signaling a significant downturn, closely linked to global money supply (M2). Some analysts predict that the price of BTC could drop by up to 80%, possibly reaching $20,000 in a few weeks. This could pose a major challenge to Bitcoin's six-figure price path. The Relationship Between Bitcoin and Money Supply According to history, the price of Bitcoin shows a close correlation with the global money supply (M2) trend. According to The Kobeissi Letter, this correlation is often expressed with a 10-week delay. For example, in October, the global money supply reached a peak of $108.5 trillion but dropped to $104.4 trillion in December, the lowest level since August. This decline coincides with the timing of the Bitcoin price decrease. Kobeissi's letter predicts a significant correction in BTC price, emphasizing the important role of this correlation in understanding Bitcoin price fluctuations. They declare: If the liquidity continues to decrease, the price of Bitcoin may face significant pressure, which could lead to a strong correction. Potential Results of Correlation Joe Consorti highlights two possible scenarios related to Bitcoin's relationship with the global money supply. In the first scenario, Bitcoin detaches from the correlation due to high demand within its ecosystem, leading to an independent price increase. On the other hand, if liquidity remains tight, a significant correction may occur. Jamie Coutts also emphasizes the impact of money supply on Bitcoin. Coutts predicts that the global money supply could reach $127 trillion by 2025. He believes that Bitcoin could account for 10% of this new liquidity, leading to significant growth. Although this scenario presents many significant opportunities, it also carries risks for BTC investors. Market Dynamics and Alternative Perspectives Some analysts believe that the relationship between money supply and Bitcoin is gradually losing relevance. For example, CryptoAnarchyst notes that the market is now more influenced by institutional investors and ETFs. Therefore, traditional liquidity figures may no longer be as predictive as before. The global money supply remains an important indicator of overall liquidity in the economy. Historically, increased liquidity has driven investors towards riskier assets. Conversely, during periods of reduced liquidity, assets like Bitcoin tend to decline. This dynamic continues to play a significant role in Bitcoin market behavior. Bitcoin's technical prospects From a technical perspective, Bitcoin shows potential for both short-term and long-term price increases. Currently trading at a 50-day Simple Moving Average (SMA) of $91,748 and a 200-day SMA of $70,040, BTC demonstrates the possibility of recovery. The main support is at $95,000, while $100,000 plays a crucial resistance role. Breaking these levels could pave the way for new record highs. DYOR! #Write2Win #Write&Earn $BTC {spot}(BTCUSDT)