Analyses suggest that the correlation between Bitcoin’s price and global money supply (M2) could lead to a significant price correction. The renowned analytical publication, The Kobeissi Letter, has predicted that Bitcoin could plummet to $20,000, representing an 80% decrease from its current value. This trend aligns with the recent decline in global money supply from $108.5 trillion in October to $104.4 trillion in December. However, Kobeissi’s perspective has faced strong opposition from many digital currency users and enthusiasts on social media. Some analysts also argue that with institutional investors and Exchange-Traded Fund (ETF) involvement, Bitcoin’s correlation with M2 is no longer a critical indicator.
