Global money supply has tripled Bitcoin’s market cap this year

The world’s money supply has surged by $4.5 trillion this year, three times larger than Bitcoin’s market cap.

The global liquidity benchmark, called M2, captures a wide range of liquid financial instruments. These include physical currency, checking accounts, and other assets that can be quickly converted to cash.

Global Money Supply (Source: BGeometrics)

Historically, Bitcoin has shown a strong correlation with M2 growth because the demand for finite, decentralized assets like BTC tends to grow when global liquidity rises.

Unlike fiat currencies, Bitcoin’s supply is fixed at 21 million, making it inherently resistant to inflationary pressures. This scarcity has continued attracting attention from institutional players and individuals seeking refuge in volatile or inflation-hit economies.

Bitcoin soared past its all-time high earlier this year, climbing to over $109,000. The rally was partly driven by growing global concerns around currency debasement, central bank policies, and the search for alternative stores of value.

Bitcoin Price Performance YTD (Source: Tradingview)

However, its price has since pulled back, trading around $84,000 at press time amid escalating global trade tensions and renewed tariff disputes.

Despite the short-term volatility, the widening gap between traditional monetary expansion and Bitcoin’s fixed supply may reinforce its role as a hedge in a world flooded with fiat.

André Dragosch, Head of Research at Bitwise, first shared the data in an April 16 post on X.

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