- Gold’s sharp rally could hint at Bitcoin’s next potential move.
- Expert says Bitcoin’s link with global M2 has significantly weakened.
- Analysts closely watch Bitcoin as its correlation patterns continue shifting.
A new comparison between gold and Bitcoin has drawn attention across the crypto market after a striking similarity appeared in their price movements. A recent chart shared by Colin Talks Crypto shows that gold’s price trend appears to lead Bitcoin’s by about 80 days.
According to Colin, the data suggests that Bitcoin may follow gold’s recent rally if the current pattern continues. His chart displayed gold’s upward surge contrasted with Bitcoin’s mild decline, revealing a noticeable time-lag correlation between the two assets.
The analysis indicates that both markets often respond similarly to shifts in global liquidity and investor sentiment. In the shared chart, gold’s strong rise has created speculation that Bitcoin might experience a similar move in the near future.
Expert Notes Weakening Global M2 Correlation
In addition to the chart comparison, Colin addressed another critical topic involving Bitcoin’s link to the global M2 money supply. He stated that Bitcoin’s correlation with global M2 has weakened sharply in recent months, making it the weakest since early 2024.
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According to him, this shift mirrors what occurred near previous Bitcoin cycle peaks when the asset historically broke correlation with M2 before topping out. Colin suggested that the same pattern could be unfolding again, noting that Bitcoin might be approaching a key phase in its current cycle.
He further explained that Bitcoin and M2 had moved in close alignment since the launch of Bitcoin spot ETFs in January 2024. However, that connection has gradually faded over the last three months.
Market Reaction and Analyst Concerns
Colin criticized some analysts for presenting charts that exaggerate short-term relationships through selective scaling. He emphasized that his chart was created without bias and accurately reflects how far M2 has diverged from Bitcoin.
Additionally, Colin mentioned that Bitcoin could regain some level of correlation with global M2 if another major rally begins. Even so, he maintained that such an outcome is uncertain and should not be assumed as guaranteed.
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