Why is real M2 considered an important indicator for predicting cryptocurrency trends?

1 answers

• Dec 28, 2021 · 3 years ago
  Real M2 is considered an important indicator for predicting cryptocurrency trends because it reflects the overall economic conditions and investor sentiment. Real M2 measures the money supply in an economy, which includes both physical currency and deposits in banks. When real M2 increases, it indicates that there is more money available for investment, which can potentially lead to increased demand for cryptocurrencies. Conversely, a decrease in real M2 may suggest a decrease in investor confidence and could result in a decline in cryptocurrency prices. BYDFi, a leading cryptocurrency exchange, closely monitors real M2 as part of its market analysis to predict future trends and provide valuable insights to its users.
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