Global M2 Growth Could Boost Bitcoin by 2026

Impact of Global Monetary Supply on Bitcoin and Cryptocurrency

Recent insights from Jamie Coutts, chief cryptocurrency analyst at Real Vision, shed light on how global monetary trends are shaping the landscape of Bitcoin and other digital assets. Over the past two years, an impressive influx of $1.1 trillion has poured into Bitcoin and similar cryptocurrencies, highlighting a significant shift in investment patterns.

Understanding the M2 Money Supply

The M2 money supply, which encompasses cash, checking account balances, savings deposits, and money market mutual funds, plays a crucial role in economic dynamics. In the fourth quarter of 2022, the M2 money supply saw a stark decline to $94 trillion but has since rebounded, soaring to approximately $105 trillion by early 2023.

Bitcoin's Exponential Growth

This increase in the M2 money supply has proven to be a significant catalyst for Bitcoin's remarkable appreciation. During this recovery period, Bitcoin's market capitalization ballooned fivefold, contributing an astonishing $1.5 trillion in newfound value to the cryptocurrency market. This showcases a strong correlation between fluctuations in the money supply and the performance of Bitcoin.

Future Projections: M2 Money Supply and Bitcoin

Looking forward, Coutts presents a compelling projection: the global M2 money supply could reach around $118 trillion by the end of 2026. This anticipated increase suggests a favorable landscape for Bitcoin, implying that as the money supply continues to grow, the value of digital assets like Bitcoin may similarly ascend.

Conclusion

In conclusion, the relationship between monetary supply and cryptocurrency markets is becoming increasingly evident. As more capital enters the cryptocurrency space, particularly with Bitcoin leading the charge, investors and analysts alike are optimistic about the future performance of these assets. With the potential growth in M2 money supply, Bitcoin might see a substantial uptick in value in the upcoming years, solidifying its position as a pivotal player in global finance.