Real Vision’s chief crypto analyst Jamie Coutts states that approximately $1.1 trillion of the global money supply has been directed towards Bitcoin 
$64,127 and other assets over the past two years. This development has increased the role of digital assets within the financial system.
Growth of M2 Money Supply
Coutts shared on the social media platform X that the M2 money supply reached a low of $94 trillion in the fourth quarter of 2022 and has since risen to $105 trillion. During this period, Bitcoin’s market capitalization increased fivefold, contributing an additional $1.5 trillion.
“The global M2 money supply hit a low of $94 trillion in Q4 2022 and has since risen to $105 trillion. During this time, Bitcoin’s market cap increased fivefold, adding $1.5 trillion.”
Shifts in New Money Supply
Coutts indicated that 10% of the new money supply has leaked from the fiat system into global reserve assets like Bitcoin. He noted that other assets, such as gold and stocks, have also absorbed this new money.
“Thus, 10% of the new money supply has seeped into emerging global reserve assets like Bitcoin. Assets like gold and stocks have also absorbed this new money.”
Future Predictions
Coutts predicts that by the end of 2026, the global M2 supply will reach approximately $118 trillion. He believes this increase could contribute to Bitcoin’s growth.
Potential for Economic Solutions
Coutts emphasized that Bitcoin’s annual growth has outpaced the Federal Reserve’s balance sheet, M2 money supply, and real wages in the U.S., suggesting that Bitcoin offers economic solutions for many individuals, businesses, and sovereign states.
“For individuals, companies, and sovereign states, Bitcoin is one of the few ways to escape this turmoil.”
Currently, Bitcoin is trading at $98,035, having increased by 2.94% in the last 24 hours. The rising share of Bitcoin and other digital assets in the global money supply may indicate significant shifts in economic dynamics. Observers will continue to monitor the sustainability and long-term impacts of these developments.
