Analysts Split on Whether Record Money Supply Will Boost Bitcoin

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.