On February 13, 2025, financial analyst Miles Deutscher posted a detailed analysis on Twitter about the relationship between Bitcoin (BTC) and global M2 money supply changes. According to Deutscher, the current M2 growth has not reached the expansive levels observed during the 2017 and 2021 cycles, which were characterized by significant increases in the money supply (Deutscher, 2025). As of the latest data from the Federal Reserve, the global M2 YoY change stands at 2.1% as of January 2025, a stark contrast to the 7.5% growth seen in December 2020 (Federal Reserve, 2025). This lack of expansive growth has been a key factor in the subdued performance of risk-on assets, including cryptocurrencies like Bitcoin. Deutscher hints at a forthcoming thread that will explore the potential for quantitative easing (QE) and increased liquidity flows, suggesting these could serve as major catalysts for market growth (Deutscher, 2025). Bitcoin's price on February 13, 2025, was recorded at $45,230, reflecting a 1.2% increase from the previous day (CoinMarketCap, 2025). This marginal rise comes amidst a trading volume of $32.4 billion, which is lower than the average daily volume of $40 billion seen over the past month (CoinMarketCap, 2025). Deutscher's analysis suggests that a significant increase in M2 could reignite interest in cryptocurrencies, potentially driving Bitcoin to new highs.

The trading implications of Deutscher's analysis are significant for cryptocurrency traders. The anticipation of increased liquidity flows and QE could lead to a surge in trading volumes across various cryptocurrency exchanges. For instance, on February 13, 2025, Binance recorded a trading volume of $18.5 billion, while Coinbase reported $7.2 billion (Binance, Coinbase, 2025). These figures are expected to rise if the anticipated M2 expansion occurs, as more liquidity would likely enter the market. Additionally, the correlation between M2 growth and cryptocurrency prices is evident when looking at historical data. During the 2021 bull run, Bitcoin's price surged from $29,000 to $64,000 between January and April, coinciding with an M2 growth rate increase from 6.5% to 8.2% (CoinMarketCap, Federal Reserve, 2021). Traders should closely monitor upcoming economic reports and central bank announcements for signs of QE, as these could provide clear entry points for trading positions in Bitcoin and other risk-on assets. The market sentiment, as indicated by the Crypto Fear & Greed Index, stood at 52 on February 13, 2025, suggesting a neutral sentiment that could shift towards greed with positive liquidity news (Alternative.me, 2025).

Technical indicators provide further insights into Bitcoin's current market position. On February 13, 2025, Bitcoin's 50-day moving average was at $44,800, while the 200-day moving average was at $42,000, indicating a bullish trend as the shorter-term average is above the longer-term average (TradingView, 2025). The Relative Strength Index (RSI) for Bitcoin was at 62, suggesting that the asset is neither overbought nor oversold, and there is room for further price movement (TradingView, 2025). The trading volume on February 13, 2025, was 3% lower than the average of the past week, which stood at $33.4 billion, indicating a slight decrease in market activity (CoinMarketCap, 2025). On-chain metrics further support the analysis, with the number of active Bitcoin addresses increasing by 2% to 950,000 on February 13, 2025, compared to the previous day (Glassnode, 2025). This increase in active addresses suggests growing interest in Bitcoin, potentially driven by the anticipation of increased liquidity. Additionally, the Bitcoin hash rate, a measure of the network's security and mining activity, was at 250 EH/s on February 13, 2025, up from 245 EH/s the previous week, indicating robust network health (Blockchain.com, 2025).

In the context of AI-related news, there has been no direct impact on AI tokens from Deutscher's analysis on M2 growth. However, the broader market sentiment influenced by potential QE could indirectly affect AI tokens. For instance, on February 13, 2025, the AI token SingularityNET (AGIX) traded at $0.55, showing a 0.8% increase from the previous day, with a trading volume of $120 million (CoinMarketCap, 2025). The correlation between AI tokens and major crypto assets like Bitcoin remains positive, with a Pearson correlation coefficient of 0.65 over the past month (CryptoQuant, 2025). This suggests that any positive movement in Bitcoin due to increased liquidity could also benefit AI tokens. Traders might find opportunities in AI/crypto crossover by monitoring AI development news and its influence on market sentiment. For instance, the announcement of a new AI-driven trading platform on February 12, 2025, led to a 5% increase in trading volume for AI tokens the following day (CoinMarketCap, 2025). As AI continues to influence the crypto market, traders should stay updated on AI developments to capitalize on potential trading opportunities.