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If this trend continues, it may support Bitcoin’s price and even set the stage for a rebound.
Bitcoin’s Key Macro Indicator Signals Parabolic Moves Ahead
A classic Bitcoin’s macro bull market signal is raising the possibilities of another massive bull run.
The M2 money supply, a key liquidity measure, has just broken above its 100-day exponential moving average (DEMA)—a critical threshold that previously marked the start of Bitcoin’s most explosive rallies.
The chart, created by analyst ‘Merlin The Trader,’ highlights three key moments when Bitcoin entered long-term bull markets:
- Bull Run 1 (2016): M2 money supply broke above its 100 DEMA, coinciding with a multi-year Bitcoin rally that sent prices soaring over 4,000% to new all-time highs.
- Bull Run 2 (2020): A similar breakout in the money supply indicator preceded Bitcoin’s 1,500% rally, fueled by pandemic-driven monetary expansion and institutional adoption.
- Bull Run 3 (2025?): The latest crossover suggests a possible repeat, with Bitcoin already trading above $88,000 despite recent volatility.
Bitcoin has historically thrived in liquidity-rich environments.
When the M2 money supply expands, financial markets tend to benefit from increased capital inflows. The correlation between Bitcoin and liquidity conditions strengthens the case that macro factors could push BTC into price discovery once again.
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