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Bitcoin’s price has been fluctuating recently, causing concern among investors. This is due to predictions of a 20-25% decline in the global M2 money supply, which Bitcoin prices have historically tracked with a 70-day lag. The recent drop in M2 suggests that Bitcoin could fall to support levels of $88,000 or $80,000. Additionally, long-term holders have been selling off their Bitcoin, with over 507,000 BTC sold since September 2023. This selling pressure, combined with an overheated market indicated by the Realized Profit/Loss ratio reaching new highs, could further push down Bitcoin’s price. The future of Bitcoin remains uncertain, with some analysts suggesting that the price could stabilize at lower levels, while others warn of further corrections if global liquidity continues to decrease.
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