The surge in the United States' money supply, nearing $100 trillion, is expected to positively impact the price of Bitcoin, currently trading at $71,000. Philip Swift, the founder of LookIntoBitcoin, shared a chart on X, indicating a correlation between global money supply (M2) and Bitcoin's price movements.
The current M2 of $94 trillion significantly surpasses previous levels, with a $3 trillion increase since Bitcoin's last all-time high in 2021. M2 has rebounded by 10% since its decline in late 2022, aligning with a bullish outlook for Bitcoin.
Additionally, the breakout of the U.S. M1 money supply from a seven-year consolidation period suggests further growth potential for Bitcoin.
Institutional investors are increasingly diversifying their portfolios with Bitcoin, as evidenced by significant inflows into cryptocurrency investment products this year, particularly those offering exposure to BTC. Ethereum-related products have also seen inflows, spurred by the SEC's approval for spot Ether ETFs, although Solana-related products have also attracted attention.
June 2024, Cryptoniteuae