Bitcoin price to 6X in 2026? M2 supply boom sparks COVID-19 comparisons

💡 DMK Insight

Bitcoin’s current price of $107,574 is echoing patterns from late 2020, and here’s why that matters: The correlation between BTC and M2 money supply is a critical indicator for traders. As liquidity increases, it historically fuels bullish sentiment in crypto markets. If this trend continues, we could see BTC testing new highs, similar to the explosive moves seen in late 2020. Traders should keep an eye on macroeconomic indicators, particularly any shifts in monetary policy that could impact M2 growth. A sustained increase in M2 could lead to a significant rally, pushing BTC beyond its current levels. But don’t ignore the risks. If inflation fears prompt the Fed to tighten, we could see a sharp correction. Watch for key support levels around $100,000; a drop below this could signal a reversal. Additionally, monitor trading volumes—higher volumes during upward moves would confirm bullish sentiment, while declining volumes could indicate weakening momentum. The next few weeks are crucial as we approach potential resistance levels, so stay alert for any signs of volatility.