Opinion: Bitcoin's buy/sell ratio indicates an overheated market, while the M2 money supply velocity suggests that economic momentum may have peaked.

According to an article published on the X platform by EndGame Macro, as reported by Odaily Planet Daily, Bitcoin's buy/sell ratio is approximately 1.17, indicating aggressive buying in the market. However, this typically reflects the urgency and leverage of crowded market positions rather than steady accumulation.

On the other hand, the velocity of M2 money has now leveled off after the rebound following the pandemic. This leveling off of the velocity of money typically reflects a loss of economic momentum before it is captured by official data.

The analyst believes that if Bitcoin prices continue to rise, it will be due to positioning and leverage temporarily outweighing fundamentals, rather than an improvement in the macroeconomic backdrop. Aggressive buying indicates that the market is increasing leverage, while broader economic trends are leveling off.