Real Vision’s head crypto analyst Jamie Coutts has made a striking revelation regarding the flow of money into Bitcoin (BTC) and other assets over the past two years. According to Coutts, approximately $1.1 trillion of the world’s money supply has found its way into these digital assets.
In a recent social media thread on X, Coutts shared with his 29,200 followers that Bitcoin experienced significant growth after the M2 money supply hit a low of $94 trillion in Q4 2022, only to surge to $105 trillion shortly after.
Coutts elaborated on the data, stating, “Global M2 bottomed at $94 trillion in Q4 2022 and has since climbed to $105 trillion. During this period, Bitcoin’s market cap 5x’ed, adding $1.5 trillion. In other words, 10% of the new money supply has leaked from the fiat system into the emerging global reserve asset of Bitcoin.”
The analyst posed an intriguing question, wondering about the potential impact if the M2 money supply expands by the usual $30 trillion in this cycle. Coutts’ chart predicts that by the end of 2026, the global M2 supply could reach $118 trillion, potentially fueling further growth for BTC.
According to Coutts, Bitcoin’s robust annual growth outpaces that of the Fed’s balance sheet, the M2 money supply, and real wages in the US. This suggests that BTC could provide economic solutions for individuals, companies, and even sovereigns looking for a way out of financial challenges.
At the time of writing, Bitcoin is trading at $98,035, marking a 2.94% gain in the last 24 hours. Coutts’ insights highlight the potential role of Bitcoin as a viable asset in a rapidly evolving financial landscape.
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