In August, the US M2 money supply reached a new record, which could influence Bitcoin's price. With the beginning of September, optimistic forecasts for the cryptocurrency are emerging.
US M2 Money Supply and its Impact on Bitcoin
In August, the US M2 money supply amounted to $22.13 trillion, increasing from $22.02 trillion in July. This indicates a continuing growth trend, likely to persist into September. According to Trading Economics, M2, which has rapidly increased since August 2024, added $1 trillion to its total. There is a correlation between M2 data and Bitcoin's value, which typically rises 90 days after M2 increases.
Bitcoin's Outlook for September and October
Historically, September is viewed as a negative month for Bitcoin, but October presents a possibility for growth. Before the November season, there is an expectation of a bullish trend, as noted by analysts pointing to the end of the bear phase. As of September, Bitcoin has likely surpassed the $111K barrier, suggesting the potential onset of a new uptrend.
Bitcoin Hyper: Updates and Improvements
Bitcoin Hyper is the official Layer 2 update for Bitcoin, aimed at resolving network congestion issues. With it, transaction confirmation times will drop from hours to seconds, and transaction costs will be reduced. Utilizing the Canonical Bridge and the Solana Virtual Machine, Bitcoin Hyper seeks to provide significant scalability improvements and enhance Bitcoin's performance.
The growth of the M2 money supply in the US creates favorable conditions for Bitcoin's development ahead of an anticipated bullish market in October. The implementation of Bitcoin Hyper could also be a significant factor in improving Bitcoin's performance and competitiveness in cryptocurrency markets.
