The post Why China Could Rescue Bitcoin From Its Slump appeared on BitcoinEthereumNews.com. Bitcoin (BTC) continues to face market headwinds, with the price sliding 13.3% over the past week and losing key support levels. However, recent analysis suggests that China’s expanding liquidity — rather than that of the United States — could soon emerge as the driving force behind Bitcoin’s next major rally. Sponsored Sponsored Bitcoin Faces Pressure, but China’s Expanding Liquidity Could Fuel the Next Rally  BeInCrypto reported that last week’s crypto market crash saw BTC dip to a low of around $107,000. While a modest rebound followed, the momentum has died down once again.  In fact, over the past 24 hours, the largest cryptocurrency has depreciated 4.85%. At the time of writing, it traded at $105,317. Bitcoin (BTC) Price Performance. Source: BeInCrypto Markets At the same time, the US M2 money supply has remained sideways for several weeks. Historically, Bitcoin’s price has shown a correlation with M2 growth — when liquidity expands, BTC often benefits. However, with the current stagnation, the short-term outlook for Bitcoin looks subdued. Despite this, Joao Wedson, founder of Alphractal, suggested that Bitcoin could gain momentum from the East, where China’s liquidity continues to surge. He noted that China’s M2 money supply has ballooned to more than twice the size of the US equivalent, widening the gap to an astonishing $24.9 trillion.  Sponsored Sponsored “Right now, China’s M2 money supply is 2.1x larger than that of the United States. While the US M2 has been moving sideways for weeks, China’s keeps climbing nonstop — now $24.9 trillion higher than the US,” he wrote. According to Wedson, historical patterns show a clear correlation. Whenever China’s M2 overtakes its US counterpart, Bitcoin’s price ascends.  Furthermore, stabilization in the ratio has corresponded to sideways movement in the asset. This sign, which the executive dubbed a ‘macro alpha’ signal, has recurred… The post Why China Could Rescue Bitcoin From Its Slump appeared on BitcoinEthereumNews.com. Bitcoin (BTC) continues to face market headwinds, with the price sliding 13.3% over the past week and losing key support levels. However, recent analysis suggests that China’s expanding liquidity — rather than that of the United States — could soon emerge as the driving force behind Bitcoin’s next major rally. Sponsored Sponsored Bitcoin Faces Pressure, but China’s Expanding Liquidity Could Fuel the Next Rally  BeInCrypto reported that last week’s crypto market crash saw BTC dip to a low of around $107,000. While a modest rebound followed, the momentum has died down once again.  In fact, over the past 24 hours, the largest cryptocurrency has depreciated 4.85%. At the time of writing, it traded at $105,317. Bitcoin (BTC) Price Performance. Source: BeInCrypto Markets At the same time, the US M2 money supply has remained sideways for several weeks. Historically, Bitcoin’s price has shown a correlation with M2 growth — when liquidity expands, BTC often benefits. However, with the current stagnation, the short-term outlook for Bitcoin looks subdued. Despite this, Joao Wedson, founder of Alphractal, suggested that Bitcoin could gain momentum from the East, where China’s liquidity continues to surge. He noted that China’s M2 money supply has ballooned to more than twice the size of the US equivalent, widening the gap to an astonishing $24.9 trillion.  Sponsored Sponsored “Right now, China’s M2 money supply is 2.1x larger than that of the United States. While the US M2 has been moving sideways for weeks, China’s keeps climbing nonstop — now $24.9 trillion higher than the US,” he wrote. According to Wedson, historical patterns show a clear correlation. Whenever China’s M2 overtakes its US counterpart, Bitcoin’s price ascends.  Furthermore, stabilization in the ratio has corresponded to sideways movement in the asset. This sign, which the executive dubbed a ‘macro alpha’ signal, has recurred…