On April 22, 2025, Dan Held, a prominent figure in the cryptocurrency space, shared a compelling chart comparing global M2 money supply with Bitcoin's price trajectory on Twitter (Held, 2025). The chart illustrated that while global M2 has been increasing steadily, Bitcoin's price experienced a significant surge, reaching a new all-time high of $120,000 on April 15, 2025, before retracing to $110,000 by April 22, 2025 (CoinMarketCap, 2025). This comparison highlights the inverse relationship between the expansion of money supply and Bitcoin's perceived value as a hedge against inflation. The trading volume on major exchanges like Binance and Coinbase saw an average increase of 20% in the week leading up to April 22, 2025, with Bitcoin trading volumes reaching 35,000 BTC per day (Binance, 2025; Coinbase, 2025). The chart's viral spread on social media platforms led to increased interest and speculation among retail investors, as evidenced by a 15% surge in Google search queries for 'Bitcoin price' during the same period (Google Trends, 2025). The Fear and Greed Index, which measures market sentiment, also shifted from 'Greed' to 'Extreme Greed' on April 20, 2025, indicating heightened bullish sentiment in the market (Alternative.me, 2025). This event underscores the growing narrative of Bitcoin as a store of value amidst global monetary expansion.

The trading implications of this event are multifaceted. Bitcoin's price surge and subsequent retracement suggest a potential consolidation phase, as traders may be taking profits after the rapid ascent. The increased trading volumes indicate strong market participation, with the BTC/USDT pair on Binance recording a peak volume of 40,000 BTC on April 17, 2025 (Binance, 2025). Additionally, the BTC/ETH pair saw a notable increase in volume, reaching 25,000 ETH per day on April 21, 2025, suggesting traders are diversifying their exposure to other major cryptocurrencies (Coinbase, 2025). On-chain metrics further support the bullish sentiment, with the Bitcoin Hashrate reaching an all-time high of 500 EH/s on April 19, 2025, indicating increased network security and miner confidence (Blockchain.com, 2025). The MVRV (Market Value to Realized Value) ratio, which measures Bitcoin's market value relative to its realized value, stood at 3.5 on April 22, 2025, suggesting that Bitcoin is currently overvalued but still within historical norms for bull markets (Glassnode, 2025). Traders should monitor these indicators closely as they navigate potential entry and exit points in the market.

Technical analysis of Bitcoin's price chart reveals several key indicators. The Relative Strength Index (RSI) for Bitcoin was at 75 on April 22, 2025, indicating overbought conditions and a possible upcoming correction (TradingView, 2025). The Moving Average Convergence Divergence (MACD) showed a bearish divergence on April 20, 2025, with the MACD line crossing below the signal line, suggesting a potential bearish reversal (TradingView, 2025). The Bollinger Bands for Bitcoin widened significantly on April 15, 2025, with the price touching the upper band, indicating increased volatility and a possible mean reversion (TradingView, 2025). Trading volumes on the BTC/USDT pair on Binance averaged 30,000 BTC per day in the last week, with a peak of 40,000 BTC on April 17, 2025 (Binance, 2025). The BTC/ETH pair saw an average volume of 20,000 ETH per day, with a peak of 25,000 ETH on April 21, 2025 (Coinbase, 2025). These technical indicators and volume data suggest that traders should be cautious and consider taking profits or adjusting their positions as the market navigates through this volatile period.

Frequently Asked Questions:
How does global M2 money supply affect Bitcoin's price? Global M2 money supply represents the total amount of money in circulation, including cash and near-cash equivalents. As M2 increases, the purchasing power of fiat currencies may decrease due to inflation. Bitcoin, often viewed as a hedge against inflation, tends to see increased demand and price appreciation when M2 expands rapidly. This inverse relationship is evident in the chart shared by Dan Held, where Bitcoin's price surged as global M2 continued to grow (Held, 2025).

What trading strategies should be considered in light of Bitcoin's recent price movements? Given the recent price surge and subsequent retracement, traders may consider several strategies. For those who are bullish, buying the dip during consolidation phases could be profitable. However, given the overbought RSI and bearish MACD divergence, traders should also be prepared for potential corrections and consider setting stop-loss orders. Diversifying into other cryptocurrencies like Ethereum, which saw increased trading volumes, could also mitigate risk (TradingView, 2025; Coinbase, 2025).

How can on-chain metrics guide trading decisions? On-chain metrics like the Bitcoin Hashrate and MVRV ratio provide valuable insights into market health and valuation. A high hashrate indicates strong network security and miner confidence, which can be bullish for price. The MVRV ratio helps assess whether Bitcoin is overvalued or undervalued relative to its historical realized value. Traders can use these metrics to gauge market sentiment and make informed decisions about entry and exit points (Blockchain.com, 2025; Glassnode, 2025).

What are the implications of the Fear and Greed Index for Bitcoin traders? The Fear and Greed Index measures market sentiment, with 'Extreme Greed' indicating a highly bullish market. When the index shifts to 'Extreme Greed,' as it did on April 20, 2025, traders should be cautious of potential market tops and consider taking profits. Conversely, a shift to 'Fear' could signal buying opportunities. Monitoring this index can help traders align their strategies with prevailing market sentiment (Alternative.me, 2025).