Trade war vs record M2 money supply: 5 things to know in Bitcoin this week

Key Points

  • Bitcoin traders are cautious due to ongoing trade war concerns, with BTC price action facing a key downtrend breakout challenge.
  • Tariffs and macroeconomic topics dominate the week, influencing risk assets and Bitcoin ETFs, which saw significant outflows.
  • Despite trade war pressures, a weakening US dollar might benefit Bitcoin and other risky assets.
  • Global M2 money supply is at an all-time high, potentially signaling future Bitcoin price movements.
  • Analysts are closely watching Bitcoin's interaction with key resistance levels and historical patterns for potential price movements.

Summary

As the US trade war continues into the third week of April, Bitcoin (BTC) traders remain cautious, with the cryptocurrency's price action attempting to break through a long-term resistance trend line. The week's key macroeconomic focus is on tariffs, which could introduce volatility in risk assets, including Bitcoin. Despite a significant outflow of nearly $800 million from Bitcoin ETFs, some investors like Strategy are buying the dip, suggesting a belief in Bitcoin's resilience. The weakening US dollar might provide some relief for Bitcoin and other risk assets, while the global M2 money supply reaching all-time highs could historically signal future price increases for Bitcoin. Analysts are closely monitoring Bitcoin's price for signs of a breakout or a potential dip, with predictions varying from a possible push to $88,000 to a dip towards $81,000 before potentially reaching $95,000-$100,000. The market's reaction to trade war developments and macroeconomic indicators will likely dictate Bitcoin's short-term movements.

cointelegraph
April 14, 2025
Crypto
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