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A closely watched ratio of Bitcoin's price against global M2 money supply has traced out a head-and-shoulders technical pattern, a formation traders traditionally read as a reversal signal.
According to Binance, the S&P 500 plotted against the same M2 baseline is, if anything, sending a sharper warning.
What the BTC/M2 Ratio Actually Measures Dividing $BTC's price by M2 — the broad money-supply aggregate that includes cash, checking deposits, and savings accounts — is an attempt to strip out the inflationary effect of central-bank expansion.
The argument is straightforward: if Bitcoin is rising only because more dollars exist, the real gain is smaller than the nominal price suggests.
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