The Bitcoin Storm battle against trust money is witnessing not a change, but a „flattening“ as the coronavirus disrupts economic policy.
A graph of the U.S. M2 money supply compared to the largest cryptomone shows that while one is leveling out its supply, the other is becoming „parabolic.
The BTC is hardening, the USD is becoming „parabolic“
Uploaded to Twitter by Robert Breedlove, CEO of digital asset investment firm Parallax Digital, the graph highlights the surprisingly different paths taken by Fiat and Bitcoin since the coronavirus struck in March.
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Bitcoin’s fixed supply program (the number of new coins issued is halved every 2016 blocks) has coincided with the mass printing of money in the US and elsewhere.
The last decrease in supply occurred in the May halving. At the same time, central banks continue to announce stimulus programs that inflate the cash supply.
The result is that Bitcoin shows the kind of „flattening curve“ that governments wanted to see in coronavirus cases, making the supposedly demanded measures that caused the money to be printed in the first place.
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„The Bitcoin supply curve begins to flatten out against a parabolic USD M2 money supply, what happens next,“ said Breedlove.
USD M2 money supply versus Bitcoin
The USD M2 money supply against Bitcoin. Source: Robert Breedlove/Twitter
M2 refers to the money supply of M1 plus what the Federal Reserve summarizes as „a broader set of financial assets held primarily by households“. At the close of this edition, total M2 was $18.115 trillion, an increase of $2.4 trillion since March.
No crisis for hard money
As Cointelegraph reported, Bitcoin’s recovery from the drop in its prices several months ago has demonstrated the resilience of its self-governing protocol.
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Second quarter returns were over 50%, making BTC the best performing macro asset. The analysis has also revealed similarities between current market conditions and Bitcoin’s historical performance at the end of the bear markets.
One prediction even puts the BTC/USD at USD 75,000 in weeks, due to the recovery that copies almost exactly the same as 2013.
However, not everyone is optimistic; Cointelegraph analyst filbfilb suggests that short-term indicators demand caution and that the USD 10,000 remains an unlikely support level.