Ethereum Could Reach $10,000 as M2 Money Supply Correlation Lag Resolves, Analysts Predict

On the 6th, an analyst from Cryptoquant, XWIN Research Japan, noted that over the past three years, the US M2 money supply has entered an expansion phase, reaching a record level of approximately $22.2 trillion. Against this backdrop, Bitcoin was the first to reflect this 'wave of liquidity', rising more than 2.6 times since 2022, with a correlation coefficient with M2 of about 0.9, indicating a very high level. The increase in M2 money supply signifies an expansion in the amount of money circulating in the economy, indicating an increase in liquid assets such as bank deposits. Such surplus liquidity promotes capital inflows into cryptocurrencies and other risk assets...