Bitcoin (CRYPTO: BTC) is experiencing significant momentum due to four macroeconomic factors: surging global liquidity, a weakening dollar, lower Treasury yields, and a post-halving supply squeeze. The global M2 money supply reached approximately $108.4 trillion in April, reminiscent of conditions preceding Bitcoin’s 2021 highs. Concurrently, the dollar index has decreased by roughly 10% year-to-date, marking its worst six-month performance since 1986.
Benchmark 10-year Treasury yields have fallen from 4.81% in late January to the low 4% range this week. Each notable Bitcoin price surge since 2017 has followed a decline in these yields. Furthermore, the supply of Bitcoin is set to decrease to about 450 coins per day after the 2024 halving, compounding demand pressures from institutional investors.
As a result, long-term investors are encouraged to consider accumulating Bitcoin, as it appears poised for substantial movement in the upcoming months.
