What are the correlations between M2 graph and cryptocurrency prices?

4 answers

• mary.claytonSep 26, 2025 · 2 months ago
  The M2 graph, which represents the money supply in an economy, can have an indirect impact on cryptocurrency prices. When the M2 graph shows an increase in the money supply, it can lead to inflationary pressures and a decrease in the purchasing power of fiat currencies. This can drive investors towards cryptocurrencies as a hedge against inflation, leading to an increase in demand and potentially higher prices for cryptocurrencies.
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• Rakesh RockyFeb 18, 2024 · 2 years ago
  The M2 graph and cryptocurrency prices are not directly correlated, but there can be some indirect influences. For example, if the M2 graph shows a decrease in the money supply, it can indicate a tightening of monetary policy, which could lead to a decrease in overall economic activity. This could potentially impact investor sentiment and lead to a decrease in demand for cryptocurrencies, resulting in lower prices.
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• Anjali JethvaMar 30, 2021 · 5 years ago
  According to a study conducted by BYDFi, there is a positive correlation between the M2 graph and cryptocurrency prices. The study analyzed historical data and found that when the M2 graph shows an increase in the money supply, there tends to be a corresponding increase in cryptocurrency prices. However, it's important to note that correlation does not imply causation, and other factors such as market sentiment and regulatory developments can also influence cryptocurrency prices.
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• Matteo TheboulSep 28, 2025 · 2 months ago
  The M2 graph is a measure of the money supply in an economy, while cryptocurrency prices are determined by supply and demand dynamics in the cryptocurrency market. While there may be some indirect correlations between the two, it's important to consider other factors such as market sentiment, technological advancements, and regulatory developments when analyzing cryptocurrency prices. It's also worth noting that different cryptocurrencies may have different correlations with the M2 graph, as their underlying technologies and use cases can vary significantly.
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