The fight of Bitcoin (BTC) against Fiat Money is witness no change but a “flattening” how the corona virus disrupts economic policy.
A chart of the U.S. M2 money supply versus the largest cryptocurrency shows this While one leveled his offer, the other became “parabolic”.
BTC hardens, USD becomes “parabolic”
Uploaded to Twitter by Robert Breedlove, CEO of Parallax Digital investment firm for digital assets, The graphic shows the surprisingly different paths that Fiat and Bitcoin have taken since the outbreak of the Corona virus in March..
Bitcoin’s fixed delivery program (the number of newly issued coins will be halved every 2016 blocks) coincided with massive money pressure in the United States. and in other places.
The last drop in supply occurred in the May halving. At the same time, Central banks continue to announce stimulus packages that increase cash supply.
The result is that Bitcoin shows the kind of “flattening curve” that governments wanted to see in coronavirus casesto take the allegedly sued measures that primarily caused the pressure of money.
“”Bitcoin’s supply curve is starting to flatten against a parabolic money supply of USD M2What happens next? “Breedlove commented.
The USD M2 money supply against Bitcoin. Credit: Robert Breedlove / Twitter
M2 refers to M1’s money supply, as well as what the Federal Reserve summarizes as “a wider range of financial assets primarily held by households”.. At the time of printing, the total amount of M2 was $ 18.115 trillion, an increase of $ 2.4 trillion compared to March.
There is no crisis for hard money
As Cointelegraph reported Bitcoin’s recovery from falling prices a few months ago has demonstrated the resilience of its protocol self-government.
Second quarter returns have exceeded 50%, making BTC the best performing macro asset. The analysis also revealed similarities between current market conditions and Bitcoin’s historical behavior at the end of bear markets.
A forecast even assumes that BTC / USD will be around $ 75,000 in weeks, due to the restoration that copied almost exactly the same from 2013.
However, not everyone is optimistic; the Cointelegraph analyst filbfilb suggests that short-term indicators have been cautious and that $ 10,000 is an unlikely level of support.