A financial expert has raised concerns about using global M2 money supply data to predict the price movements of Bitcoin (BTC), labeling such analyses as flawed and deceptive. This criticism coincides with a sharp increase in global M2 money supply reaching its highest level ever. Despite this, numerous analysts are predicting similar patterns for BTC.

The analyst, identified as TXMCtrades, expressed his views on X (formerly Twitter), specifically referencing a chart by macro investor Raoul Pal that compared Bitcoin's price to global M2 data. TXMCtrades argued that daily or weekly charting of global M2 suffers from foundational issues due to inconsistent update frequencies of the underlying data. This inconsistency skews the information by accentuating short-term fluctuations instead of offering an accurate long-term trend.

Moreover, TXMCtrades highlighted concerns about the misapplication of global M2 data, pointing out that China, accounting for 46% of global M2, is the only major economy with a broad money supply exceeding its post-COVID peak in dollar terms. In contrast, US M2 remains below its 2022 peak and is growing at a slower pace compared to previous years, challenging the notion of rapid money supply growth impacting economic trends or inflation.

The analyst disputed the practice of using arbitrary offsets to align global M2 with Bitcoin's price movements, undermining the reliability of such predictions. He criticized these models as overly dependent on recent historical data without a solid basis for forecasting, calling for a more rigorous and mathematically sound approach to analyzing cryptocurrency price dynamics and discouraging the propagation of what he termed as "scammy analysis."