Recently, there has been heightened interest in the relationship between the money supply and Bitcoin. This article explores the current trends.
Impact of Money Supply on Bitcoin
The correlation between Bitcoin and the global money supply, M2, has become increasingly relevant. Historically, a rise in the money supply has led to capital influxes into assets like Bitcoin, though this influence exhibits a lag of about 70 days.
China's Economic Outlook
China's economy plans to increase the money supply by 10% to achieve a 7% nominal GDP growth. This is part of a strategy to achieve real economic growth and control inflation.
Bitcoin's Future and Global Markets
The growth of the global money supply suggests positive prospects for Bitcoin. The U.S. is considering ways to increase strategic reserves in BTC without budget stresses, potentially sparking a chain reaction among other nations.
The ongoing growth of the money supply may drive further interest in Bitcoin, and global events could change traditional approaches to reserve management.
