Is it time to accumulate or to wait? The impact of M2 and interest rates on $BTC
To understand where the crypto market is headed, it's not enough to look at the chart; we must look at the flow of global money. Today we analyze two factors that could change the rules of the game in the short term:
1. The contraction of M2 (Monetary Supply):
The M2 money supply is showing signs of cooling. Historically, when global liquidity decreases, risk assets like $BTC tend to suffer selling pressure. Less money circulating means less fresh capital entering the markets and the crypto sector.
2. The uncertainty of interest rates:
There is still no total clarity about the upcoming moves of the Federal Reserve.
If they maintain rates: The dollar strengthens and capital flees from cryptocurrencies.
If they lower rates: Optimism is injected, but the market usually reacts with a delay.
Why buy (or not) now?
Buying at this point requires a DCA strategy (dollar-cost averaging). Going all-in is risky as long as we do not have a clear macroeconomic confirmation. The market may be "cheap" today, but the lack of liquidity (low M2) could give us better entry prices later.
Recommended strategy: Patience and vigilance. Do not trade on impulse; trade on data. Macroeconomics always has the final word.
Do you believe we have already hit the bottom or will liquidity continue to decline? Look at the chart of $BTC that I left below.👇
#Macroeconomia ##Fed #Liquidez $BTC #Write2Earn