Bitcoin targets $66,000 as ETF sees inflows on Monday

• Bitcoin is stabilizing just above the $62,000 level, waiting for a rally ahead.
• US Spot ETF data saw an inflow of $233.8 million on Monday.
• The Kobeissi letter highlights how rising global M2 money supply could be a positive sign for gold and Bitcoin.

Bitcoin (BTC) is just above $62,000 on Tuesday after a minor drop on Monday, supported by positive signs such as inflows of more than $233 million in US BTC exchange-traded funds (ETFs). At the same time, The Kobesissi Letter noted that the increasing global money supply of M2 could be a favorable signal for both gold and Bitcoin.

Bitcoin Could Reach $90,000 By 2024 Amid Rising Global Money Supply M2

According to a recent tweet by The Kobeissi Letter, the total money supply of the United States (US), the Eurozone, Japan and China has reached a new record of $89.7 trillion, with $7.3 trillion added over the past year . In the US alone, the amount of money in circulation increased by $410 billion year-on-year to $21.2 trillion. This marks the largest increase in three years and a jump similar to the initial response to the pandemic in the first half of 2020, when economic policy favoring and stimulus packages caused monetary printing worldwide. Such a condition has generally seen gold and Bitcoin prices rise over the long term.

Furthermore, New York Digital Investment Group (NYDIG) reported last week that Bitcoin remains the best performing asset this year, with a 49.2% gain year to date.

In depth, Bitcoin has a history of rising alongside the M2 money supply with a 75 to 90 day lag. Most analysts expect a healthy rally for BTC as 2024 comes to a close, despite any headwinds that could affect economic conditions.

According to market analyst Joe Consorti, the M2 trend suggests that Bitcoin could reach $90,000 by the end of 2024. In addition, CryptoQuant data also has a similar projection for the price of Bitcoin.

Additionally, US Spot Exchange Traded Funds (ETF) data saw an inflow of $233.8 million on Monday. Studying ETF flow data can be useful to observe institutional investors’ sentiment towards Bitcoin. If this magnitude of influx continues, the demand for Bitcoin will increase, leading to an increase in its price.

Bitcoin Spot ETF Total Net Flow Chart. Source: Coinglass

Furthermore, Metaplanet Inc., a publicly listed company on the Tokyo Stock Exchange, announced on Monday an additional purchase of 108,786 bitcoins for a total investment of ¥1 billion (about $6.7 million). The average purchase price was ¥9.19 million per BTC. With this purchase, Metaplanet’s total Bitcoin holdings now stand at 639,503 BTC. Metaplanet’s move could pave the way for wider adoption of Bitcoin and cryptocurrencies, among other companies.

Finally, Monday’s report from crypto asset trading firm QCP highlights the upcoming release of the US Consumer Price Index (CPI) on Thursday. “Against the recent strong US wage and jobs numbers, the market will be paying close attention to this pattern for any signs of rising inflation. Expectations for a Fed rate cut have shifted from 50bps to 25bps in just one week, and this week’s data may determine whether further cuts will be removed,” QCP said.

BTC holds a support level of $62,000

Bitcoin price found support at the 200-day exponential moving average (EMA) around $60,000 on October 2. It rose 3.5% over the next four days and broke through the $62,125 resistance level. As of Tuesday, BTC is trading just over $62,000.

If $62,125 holds as support, BTC could extend the rally to retest its psychological $66,000 level.

The Relative Strength Index (RSI) on the daily chart is at 52, just above its neutral level of 50, indicating a lack of momentum and indecision among traders. For Bitcoin’s strength to be sustained, the RSI must rise above its neutral level and continue to rise.

BTC/USDT Daily Chart

However, if the $62,125 level fails, BTC may refuse to retest its 200-day EMA at $60,000.