Global Money Supply Hits Record $103 Trillion, But Why Is Bitcoin Struggling?
The global money supply has reached an all-time high of $103.66 trillion in August, according to MacroMicro's data on M2 across four major economies. This figure represents a 10th consecutive monthly increase and a significant milestone for the world's monetary system.
The Fed, ECB, Bank of Japan, and PBOC added $1 trillion to the global money supply in August alone, with the US contributing significantly. National figures also point to growth: US M2 reached $23.34 trillion, up 5.7% annually, according to Fed data.
Historically, Bitcoin's price has tracked the pace of money growth rather than its level. A study commissioned by macro analyst Lyn Alden found that BTC followed global M2's direction in 83% of 12-month periods. However, since late 2025, M2 growth has cooled, and this trend fits the recent weakness in Bitcoin.
The price of money is rising, with the Fed raising rates to a 3.75-4% range on September 16. Higher yields raise the bar for assets that pay no income, such as gold, which dropped to $4,163. Stocks have held firm, but the next signal could come from whether M2 growth reaccelerates before yields ease.
The record money supply may not automatically lift risk assets. The correlation between Bitcoin and M2 growth suggests that a rebound in M2 could lead to higher prices for BTC.