Analysts Clash: Will Record Money Supply Ignite Bitcoin’s Next Rally?

Money printers go brrr—but will Bitcoin care?

As central banks flood markets with liquidity, crypto's flagship asset faces its ultimate stress test. Some see rocket fuel for the next bull run. Others predict a classic 'buy the rumor, sell the news' fizzle.

The Bull Case: Digital Gold 2.0

Inflation hawks argue Bitcoin's hard cap makes it the only lifeboat in a sea of fiat debasement. When every dollar printed makes your savings weaker, 21 million starts looking real nice.

The Bear Trap: Liquidity Illusion

Skeptics counter that easy money already priced in—after all, Wall Street's been front-running Fed policy since 2008. 'This isn't your grandma's money supply spike,' quips one trader. 'It's just institutional investors playing hot potato with retail bags.'

One thing's certain: in a world where 'stimulus' means propping up zombie companies, Bitcoin's brutal honesty cuts through the financial theater. Whether that translates to price action? Place your bets—the house always wins.

Good News For Bitcoin?

The US money supply is “re-surging,” observed Global Markets Investor on Tuesday. They noted that the M2 money supply in America jumped 4.5% year-over-year in May to a record $21.94 trillion.

It has likely exceeded $22 trillion in July as money printing has continued, and if the trend is projected over the next decade, the M2 money supply will double.

US money supply is re-surging:

US M2 money supply jumped 4.5% year-over-year in May, to a record $21.94 TRILLION.

This has now surpassed the March 2022 record of $21.86 trillion

For perspective, the 2000-2025 annual growth rate has been 6.3%.https://t.co/FWsgYrccuy

— Global Markets Investor (@GlobalMktObserv) July 8, 2025

The US money supply has grown rapidly, surging around 37% over the past five years since March 2020, when the money printers were ramped up to keep the economy afloat during the pandemic.

Moreover, global money supply is at a record high of $93.7 trillion and growing 7.45% annually. This global figure combines the four major central banks: the Federal Reserve (Fed), the European Central Bank (ECB), the Bank of Japan (BOJ), and the People’s Bank of China (PBOC).

“As global money supply expands, Bitcoin’s next target sits around $170,000, following the flow,” said analyst Crypto Auris last week.

Analysts had predicted a strong week for bitcoin if the outcome of Trump’s tariff deadline was positive.

However, the US president has issued letters to countries primarily in Asia that had yet to make a deal, including Japan, Korea, Thailand, and Indonesia, causing crypto markets to retreat on Tuesday.

Debunking the Correlation Theory

On July 7, Protos debunked the correlation between M2 money and Bitcoin prices, stating that the relationship falls apart when you simply change the time frame on the charts.

When zoomed from 2021 to the present, the correlation looks strong; however, when zoomed from 2019 to the present, M2 rises two years before Bitcoin. M2 even hit new highs in November 2022, while Bitcoin crashed during the FTX collapse.

Total money supply doesn’t measure liquidity available for Bitcoin purchases and correlates with the price of everything since it’s the denominator in all prices, they stated.

BITCOIN-M2 CORRELATION DEBUNKED

Technical analysts are convinced $BTC strongly correlates with M2 money supply.

Charts look compelling until you change one simple setting: the zoom.

What looks like perfect correlation from 2021 falls apart when you zoom out to 2019 pic.twitter.com/HHBGytd8lz

— Protos (@Protos) July 7, 2025