Bitcoin Shatters Historic M2 Money Supply Correlation as Money Printing Hits All-Time High
Bitcoin just decoupled from traditional monetary fundamentals in a watershed moment for digital assets.
The Great Decoupling
For years, Bitcoin moved in relative sync with M2 money supply expansions—until now. The cryptocurrency has abruptly severed ties with central bank liquidity metrics while M2 itself rockets to unprecedented levels.
Digital Gold's Independence Day
This divergence signals Bitcoin maturing beyond reactive asset status into its own value system. No longer trailing monetary policy, BTC charts its own course amid record-breaking money supply growth.
Wall Street's Mathematical Meltdown
Traders watching traditional correlations scramble as Bitcoin bypasses conventional valuation models. The rupture exposes how legacy finance struggles to price assets that operate outside centralized control mechanisms.
Another reminder that while central banks print, Bitcoin proves—proving its worth as a non-sovereign store of value while traditional metrics hit all-time highs yet fail to dictate its trajectory. Because nothing says 'sound money' like watching monetary policy become irrelevant to the asset supposedly hedging against it.
More Liquidity Not Benefitting Bitcoin
Global money supply increases when central banks print more fiat for monetary easing policies. This increases liquidity in the financial system, which enables more money for allocation to riskier assets such as crypto.
Bitcoin has not tracked global M2 with a ~70-day lag since early May.
Gold has followed global M2 with NEAR 1:1 sensitivity.
A tale of cross-asset correlations amidst secular dollar weakness and geopolitical risk.
Gold is high beta risk-off, BTC is high beta risk-on. pic.twitter.com/zUmncKyXeA
— Joe Consorti
(@JoeConsorti) September 24, 2025
The M2 money supply is a measure of the total amount of liquid money available in the economy, including cash, checking deposits, savings accounts, and other short-term investments.
It has reached an all-time high in the United States this week of around $22.2 trillion, according to the Atlanta Federal Reserve.
M2 expansion started in early 2024 and has increased by more than 7% since then. It has been described as “relentless debasement baked into the system,” as every new dollar printed dilutes the old ones.
Additionally, the US dollar has weakened significantly this year. The dollar index (DXY) – a measure of the greenback against a basket of currencies – has slumped 12% since the beginning of this year to its lowest level since early 2022 this month.
This should all be gravy for Bitcoin, but the asset has remained sideways for the past three months and is 9% down from its all-time high.
Goldbug Peter Schiff claimed it was already in a bear market, stating that it has dropped 20% against gold since its August peak. What the crypto critic failed to mention is that BTC has gained 78% over the past 12 months, whereas gold is up 42%.
Whether you like it or not, bitcoin’s value is very much linked to its scarcity. Fiat will be printed, Bitcoin will rise. pic.twitter.com/iJ854qXw33
— PlanB (@100trillionUSD) September 24, 2025
Bitcoin Price Outlook
BTC closed in on $114,000 during late Wednesday trading but faced resistance there and has fallen back to $111,700 after finding support a little lower at the time of writing.
The asset is down 4.5% over the past week and is holding at a key support level. Without further momentum, the selling pressure is likely to increase, deepening the September correction.
