I'm watching and expecting BTC to 'Catch Up' to M2 Global Money Supply, which had a surge recently but for some reason Bitcoin (which usually follows Global M2 by 10-12 weeks) has been going down.
So I asked Perplexity AI why Bitcoin was diverging from M2 and here's what it said:
Short- and Medium-Term Outlook
"Reports from September 2025 suggest that Bitcoin may again catch up with M2-driven targets if current consolidation resolves upward, especially if risk-on appetite returns to crypto markets and institutional flows accelerate.
"The temporary lag appears mainly due to the interaction of new market participants, shifting global risk dynamics, and profit-taking after a sharp run-up rather than a breakdown in the long-term macro correlation.
"In summary, the present Bitcoin-M2 divergence is explained by a complex mix of risk-off macro sentiment, evolving investor structure, and short-term consolidation within the crypto market—all occurring despite strong global liquidity expansion."