Willy Woo: The cycle has likely peaked; M2 growth may not necessarily drive Bitcoin's price up.
TL;DR
Crypto analyst Willy Woo suggests the current market cycle may have peaked, cautioning that M2 money supply growth doesn't guarantee Bitcoin price increases. He notes Bitcoin often leads M2 trends at cycle ends, and global M2 could fall if investors favor dollars over risky assets.
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ChainCatcher reports that crypto analyst Willy Woo wrote: "Don't assume that M2 (broad money supply) growth will necessarily drive Bitcoin up. At the end of the cycle, Bitcoin often leads the trend of M2. My personal view is that, based on models of capital inflows and outflows from Bitcoin and the cryptocurrency sector, we may have already peaked."
"The Fed is lowering interest rates and increasing the money supply, which makes you think that the global M2 money supply will rise. But if global investors are buying dollars instead of risky assets, then the dollar will strengthen and global M2 will fall."