Today we dive into the world of crypto. We are looking into the recent rally in the Altcoins including 
ETH and §Sol and try to understand the reasons behind it and what is means for the future. 
TOTAL2 depicts the total market capitalization of all the Altcoins except 
BTC but including stable coins. When in doubt, zoom out. Today we are looking at the monthly candle stick charts for the TOTAL2 vs the $USM2. 
USM2 is the total M2 money supply from all the sources not only the banks but also other forms of cash within the economy. M2 money supply generally goes up and the economy grows and the Govt and Fed Balance sheets grow.
USM2 is primarily responsible for the increase in stock and asset prices. Crypto is no exception to it. Whenever the M2 Money supply goes up the Altcoins usually goes up. During the last Crypto cycle, the Altcoins peaked @ 1.7T $ in Nov 2021 and the USM2 peaked a few months after that in March 2022 @ 21.71T $. When the USM2 fell to 20.66T $ the Altcoins market suffered a bear market and lost 75% of the value. So, the question comes what happens to the TOTAL2 chart when the M2 money supply is expanding. We have clearly saw a recent surge in the Altcoin market but still below the ATH. Currently TOTAL2 at 1.16T $ is still below the 0.618 Fib retracement level plotted on the last cycle from top to bottom. Still TOTAL2 must cover a lot of ground and grow by 50% to reach its previous cycle top. In those cases, the USM2 must go up also by 1-2T $ to support such a jump in the $TOTAL2. But what will BTC do in that case?
Verdict :TOTAL2 can only go above $1.7T $ if USM2 expands by 1-2T $. Watch out for BTC in that case.
ETH and §Sol and try to understand the reasons behind it and what is means for the future. TOTAL2 depicts the total market capitalization of all the Altcoins except BTC but including stable coins. When in doubt, zoom out. Today we are looking at the monthly candle stick charts for the TOTAL2 vs the $USM2. USM2 is the total M2 money supply from all the sources not only the banks but also other forms of cash within the economy. M2 money supply generally goes up and the economy grows and the Govt and Fed Balance sheets grow. USM2 is primarily responsible for the increase in stock and asset prices. Crypto is no exception to it. Whenever the M2 Money supply goes up the Altcoins usually goes up. During the last Crypto cycle, the Altcoins peaked @ 1.7T $ in Nov 2021 and the USM2 peaked a few months after that in March 2022 @ 21.71T $. When the USM2 fell to 20.66T $ the Altcoins market suffered a bear market and lost 75% of the value. So, the question comes what happens to the TOTAL2 chart when the M2 money supply is expanding. We have clearly saw a recent surge in the Altcoin market but still below the ATH. Currently TOTAL2 at 1.16T $ is still below the 0.618 Fib retracement level plotted on the last cycle from top to bottom. Still TOTAL2 must cover a lot of ground and grow by 50% to reach its previous cycle top. In those cases, the USM2 must go up also by 1-2T $ to support such a jump in the $TOTAL2. But what will BTC do in that case? Verdict :
TOTAL2 can only go above $1.7T $ if USM2 expands by 1-2T $. Watch out for BTC in that case. 
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.