Bitcoin’s price fell by 15% in December due to negative macroeconomic conditions. The decline in global money supply (M2) is closely related, as it significantly influences cryptocurrency values.
Global M2 decreased by 4.1 trillion USD in two months, correlating strongly with Bitcoin’s performance. The drop indicates potential further declines, with predictions suggesting a dip to 20,000 USD.
Despite external pressures, Bitcoin’s increasing illiquid supply may limit price declines. Factors could balance market forces, offering potential buying opportunities in early 2025.
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