Bitcoin’s recent price dip has stirred fresh debate around its connection to global liquidity, with analysts highlighting the relationship between BTC’s trajectory and the expanding M2 money supply.
Abra CEO Bill Barhydt pointed to this trend, noting that as more fiat floods into the system, assets like Bitcoin tend to rise in value due to their limited supply. In his view, the current pullback could precede a sharp move higher—possibly reaching $130,000 by late summer, following a brief dip near $100,000.
Despite short-term bearish signals, Barhydt sees strong fundamentals at play. He pointed to rising institutional interest, including large-scale Bitcoin purchases, as fueling long-term scarcity. While opinions differ on whether the M2 correlation holds consistently, Barhydt believes Bitcoin remains at the center of the global liquidity narrative.
Although Bitcoin dropped 8% to around $103,000, the asset remains in what some consider the middle of its liquidity-driven bull cycle. Historically, May has been a strong month for BTC, and this year’s 10% monthly gain appears to support that pattern—even amid temporary sell-offs.
Analysts also expect a bullish June, with the global M2 supply now topping $111 trillion. With major economies leaning toward looser monetary policies due to economic headwinds, the macro backdrop could continue to benefit Bitcoin’s appeal as a hedge.
Meanwhile, Bitcoin’s role as a strategic asset is gaining political traction. Several U.S. states are pushing legislation to treat BTC as a reserve holding, and Senator Cynthia Lummis says Congress may revisit the Bitcoin reserve bill after completing stablecoin regulation.
Corporate adoption, however, remains mixed. While companies like GameStop are adding BTC to their balance sheets, others like Meta and Microsoft have passed for now—highlighting a cautious but growing acceptance of Bitcoin in institutional finance.
Altcoins may be heading for deeper losses against Bitcoin, according to crypto market analyst Benjamin Cowen, who sees no signs of reversal in the broader trend.
Robert Kiyosaki, author of Rich Dad Poor Dad, has raised alarm bells once again—this time warning that the financial system may already be in the early stages of a historic downturn.
On Monday alone, U.S.-listed spot BTC ETFs recorded more than $250 million in outflows—the third straight day of withdrawals—suggesting a shift in sentiment as investors reassess their exposure.
In an effort to broaden its investor base, the ARK 21Shares Bitcoin ETF (ARKB) will undergo a 3-for-1 stock split on June 16, making shares more affordable for everyday investors.