Jamie Coutts, chief crypto analyst at Real Vision, says that over the past two years, about $1.1 trillion of the world’s money supply has gone into Bitcoin (BTC) and other assets.
In a new thread on the social media platform X, Coutts tells According to his 29,200 followers, the crypto king had blossomed after the M2 money supply, a measure of the sum of cash and current account balances plus savings deposits and money market funds, hit a low of $94 trillion in the fourth quarter of 2022 before subsequently skyrocketed to $105 trillion.
“Global M2 bottomed out at $94 trillion in the fourth quarter of 2022 and has since risen to $105 trillion. During this period, Bitcoin’s market cap increased fivefold, adding $1.5 trillion.
In other words, 10% of the new money supply has leaked from the fiat system into the emerging global reserve of Bitcoin (gold, stocks, etc. have also absorbed new money). What happens if M2 grows by the usual $30 trillion this cycle?”
Coutt’s chart suggests that global M2 supply will reach approximately $118 trillion by the end of 2026, which could fuel BTC growth.
According to the analyst, since BTC is the leading crypto asset that dwarfs that of the Fed’s balance sheet, M2 money supply and real wages in the US in terms of annual market capitalization growth, offer economic solutions for many.
“It’s quite simple: for individuals, companies and governments, Bitcoin is one of the few ways out of this mess.”
Bitcoin is trading at $98,035 at the time of writing, a gain of 2.94% over the past 24 hours.
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