Analysts Split on Whether Record Money Supply Will Boost Bitcoin
2025-07-08 06:52:30
Main Idea
Analysts observe a correlation between the expansion of the US and global money supply and Bitcoin's price potential, though some debunk the direct correlation theory.
Key Points
1. The US M2 money supply surged 4.5% year-over-year in May to a record $21.94 trillion, with projections suggesting continued growth.
2. Global money supply is at a record high of $93.7 trillion, growing at 7.45% annually, driven by major central banks like the Fed, ECB, BOJ, and PBOC.
3. Some analysts predict Bitcoin could reach $250,000 or $170,000 due to money supply expansion, though others dispute the direct correlation.
4. Protos debunked the M2-Bitcoin correlation, noting M2 rose two years before Bitcoin in some periods and even hit highs while Bitcoin crashed in November 2022.
5. The article notes that total money supply doesn't necessarily measure liquidity available for Bitcoin purchases.
Description
Analysts are keenly watching money supply expansion as a key indicator for Bitcoin and crypto markets, with the notion that when central banks print more money, it eventually flows into high-risk assets such as crypto. Bitcoin markets are lining up with the 100-day offset of the M2 money supply , observed crypto YouTuber Lark Davis on Monday. He predicted a “parabolic move” that could propel the asset to $250,000 over the next few months. However, BTC is actually lagging behind the M2 supply gro...
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