The Bitcoin price has fallen 23 percent since reaching its all-time high of $73,800 on March 14. This means that the positive sentiment surrounding Bitcoin has taken a huge hit, but now there is cautious hope for the digital currency again from various perspectives.

For example, the M2 money supply (the number of US dollars in the financial system) is growing again for the first time since November 2022.

Bullish signal for Bitcoin

For the first time since November 2022, the number of US dollars in the financial system has grown again compared to 12 months ago.

This leaves Oliver Velez, a professional trader and financial author, extremely bullish on Bitcoin and the rest of the market.

“All I can say is ‘buckle up’ and buy more. Every dip is one to buy. See corrections as gifts and ignore the doomsday scenarios. We are far from the end of Bitcoin’s bull market.”

Velez is not the only one who is very bullish about this development. The popular InvestAnswers also expects that the money supply will explode in the coming period, which is positive for the Bitcoin price.

It is striking that Raoul Pal, a former top banker who now focuses entirely on crypto, already wrote about this in October 2023.

“These are the moments when Bitcoin leaves the rest of the market behind and crypto becomes a black hole for all capital in the market,” said Raoul Pal.

Less optimism at Glassnode

However, data that could be described as less optimistic comes from the on-chain analysis company Glassnode. They find that all cohorts of investors saw net outflows in the recent period.

That basically means that every type of Bitcoin investor pressed the sell button recently.

This led to increased selling pressure in recent weeks, which could not be absorbed because there were too few buyers.

Now that seems to be slowly turning around, but it is still far too early to speak of a definitive victory.

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