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Global Money Supply Reaches $103 Trillion Record While Bitcoin Price Lags Behind

(4 days ago) · 1 source · Summarized by CryptoBipto

Global money supply has reportedly reached a record $103 trillion. Despite historical correlations between rising money supply and Bitcoin price increases, Bitcoin has not followed the same pattern this time.

WHY IT MATTERS

Money supply refers to the total amount of money available in an economy, including cash, bank deposits, and other liquid assets. Think of it like the total pool of water in a system — when more water is added, each drop becomes a little less valuable. Some people buy Bitcoin because they believe it acts like a limited resource that holds its value when governments increase the money supply, similar to how gold has historically been seen. However, this relationship is not guaranteed, and many other factors influence Bitcoin's price. This story is a reminder that simple narratives about what drives crypto prices do not always play out as expected.

Global M2 money supply, a broad measure of cash and near-cash assets across major economies, has reportedly hit $103 trillion. Historically, some analysts have observed a correlation between expansions in global money supply and increases in Bitcoin's price, with the reasoning that more money in circulation can drive investors toward alternative stores of value.

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