Record Global Money Supply Fails to Lift Bitcoin Amid Slowing M2 Growth

The global money supply has reached an all-time high of $103.66 trillion, according to Woofun AI data. Despite this surge, Bitcoin and gold prices have not followed suit, sparking debate among traders.

In August, the world's four largest economies, the US, China, the Eurozone, and Japan, collectively boosted their money supply by a record $1 trillion. However, this growth has come at a slower pace than expected, with year-over-year M2 growth rates standing at around 8% in nominal terms and 4.5% when adjusted for constant exchange rates.

The weakening US dollar is largely to blame for the statistical divergence between the global money supply and asset prices. The Federal Reserve's balance sheet has expanded by only $141 billion over the past year, indicating that other central banks are driving the increase in global liquidity.