****

Bitcoin has recently experienced a dramatic pullback, plunging below $110,000 just days after hitting a new all-time high of $111,900. The cryptocurrency's value dropped as low as $107,500 before rebounding slightly, causing some investors to question the robustness of the recent rally. Despite this downturn, analysts remain optimistic about Bitcoin’s long-term trend. Crypto analyst Colin attributes his optimism to the Global M2 Money Supply, a key macroeconomic indicator.

Colin's analysis shows that Bitcoin's price closely follows the trends of the global M2 money supply with a delay of about 82 days. The recent peak in the global M2 aggregate indicates a potential for further price increases in Bitcoin. Historically, Bitcoin's movements have mirrored the M2 money supply, and this pattern appears to be holding strong, suggesting that Bitcoin may yet see significant gains.

Despite the sharp correction, Bitcoin's ability to maintain levels above its previous consolidation range of $102,000 to $104,000 is seen as a positive sign. While the recent peak of $111,900 has generated some skepticism among market participants, the underlying data continues to paint a bullish picture. Colin notes that although social sentiment remains cautious, this skepticism may be unfounded given the strong correlations and data supporting further growth.

Further bolstering this outlook, the Crypto Bull Run Index (CBBI) currently reads 79, a figure well below the threshold that typically signals a market peak. This suggests that Bitcoin is not yet in an overheated state and could have substantial room to grow. Colin’s projections indicate that if the M2 correlation persists, Bitcoin could rise past $130,000 in the near future.

At the time of writing, Bitcoin is trading at around $109,670, showing a slight 2% increase over the past 24 hours. Colin's earlier predictions of major breakout periods have proven accurate, reinforcing the credibility of his analysis. With the global M2 money supply continuing to rise, the stage appears to be set for Bitcoin’s bullish trend to continue.