Alright, listen up! Things are getting spicy in the crypto world, and I’m seeing some seriously unsettling echoes of the 2022 bear market bottom. Capriole Investments’ Charles Edwards is dropping truth bombs, and frankly, they’re not pretty. Forget the usual ‘HODL’ mantra for a minute and pay attention – we need to be REAL about what’s happening.
The latest gut punch? Trump’s announcement of potentially insane global tariffs. While the S&P 500 climbed after the news, Bitcoin took a nosedive – an 8.5% drop, folks! That’s a clear signal that BTC is being treated as a risk-on asset… and right now, risk is OUT of favor. Edwards points to unprecedented uncertainty in US business expectations, hitting levels we haven’t seen since the damn early 2000s.
Now, some might say this is just noise, a momentary blip. But Edwards is right to flag it. This isn’t just about numbers; it’s about sentiment. And right now, sentiment is scared. Key levels to watch? $91,000. If this tariff war escalates or corporate profits start to tank, we could see a serious breakdown in technicals.
But hold up, there’s a glimmer of hope. Edwards also notes that the US M2 money supply is about to loosen up, which could inject some serious fuel into the Bitcoin rocket. And Colin Talks Crypto is predicting a potential bounce in early May.
Let’s talk a little about M2 money supply. Put simply, M2 includes all physical money, demand deposits, savings deposits, and money market securities. When M2 increases, it means more money is circulating in the economy. Historically, periods of increasing M2 have often correlated with increases in asset prices, including Bitcoin. The logic is that more money chasing the same amount of assets drives up their prices. However, it’s not a perfect correlation. Inflation, interest rates, and overall economic conditions all play a role. The current anticipation of an M2 surge is stemming from the Federal Reserve adjusting its balance sheet. Whether this will actually translate to a Bitcoin price boost remains to be seen, but it’s definitely something to watch. Don’t go all-in based on a prediction, but definitely keep a close eye on these macro factors. We need to be prepared for anything, people!
