U.Today - Michael van de Poppe, cryptocurrency analyst and trader based in Amsterdam, has shared a chart, believing it indicates that Bitcoin has high chances of skyrocketing to a new historic price record within the next three months.

M2 supply rallying upward

Poppe shared a chart provided by Head of Macro (BCBA: BMAm ) Research at Global Macro Investor (GMI) Julien Bittel. The chart shows an accelerating M2 supply, which measures the total amount of money in circulation, including cash and deposits.

The chart shows that earlier this year, the trajectories of the Bitcoin price and M2 were correlated – the Bitcoin price showed a sharp decline when M2 reached the bottoming zone. The chart starts from 2023, showing that BTC and M2 have been correlated all along.

If this tandem continues, Michael van de Poppe says, Bitcoin is likely to reach a new all-time high within the next three months. The chart shows that a rise in M2 is likely to precede a Bitcoin price surge. Currently, the overall money supply has reached $120 trillion, according to the chart.

The analyst added that if M2 and the Bitcoin price skyrocket, it would mean the rise of the Chinese yuan against the U.S. dollar, a decline of the gold price, a fall in the U.S. dollar index and a rise of the altcoin market.

Strategy scoops up more Bitcoin

This week, Michael Saylor announced that his company, Strategy (formerly MicroStrategy), had made yet another massive Bitcoin acquisition – 3,459 BTC. This amount of crypto cost Strategy roughly $285.8 million.

Now, Strategy’s Bitcoin holdings have increased to 531,644 BTC valued at $45,500,432,753, while Bitcoin is currently trading at $85,584 per coin.

Strategy faces criticism from community

Famous internet entrepreneur Vinny Lingham critiqued Saylor and his company, saying it is turning into the “Federal Reserve for Bitcoin,” highlighting the growing size of Strategy’s BTC bag and, potentially, its impact on the network should it grow higher.

A comparison to the Federal Reserve suggests that if the majority of Bitcoin becomes concentrated in just the hands of a few corporate holders, Satoshi Nakamoto’s invention would become centralized like the U.S. dollar thanks to the Fed, which would be totally opposite to what Nakamoto had in mind.

This article was originally published on U.Today