Bitcoin's share of the global M2 money supply has reached 1.7%, indicating its growing macroeconomic impact and alignment with global liquidity trends.
Bitcoin's Growing Share in Money Supply
Bitcoin now comprises 1.7% of the global M2 money supply, which surpasses $112-113 trillion. This figure underscores Bitcoin's substantial presence and influence within global financial systems.
Correlation with Global Liquidity
Analysts highlight Bitcoin's correlation with global liquidity trends, pointing to its price dependency on changes in the money supply. 'Rising global liquidity drives up to 90% of Bitcoin’s price,' noted Raoul Pal, Founder of Global Macro Investor.
Impact on Institutional Investments
As Bitcoin's share increases, there is a shift in financial strategies among institutional investors. More assets are being allocated to digital currencies, and Bitcoin is increasingly viewed as a hedge against monetary policy changes.
Bitcoin's share of the global money supply continues to grow, and its role in investment strategies as a liquidity indicator remains a crucial area for ongoing analysis.
