- Bitcoin’s price increasingly tracks global money supply, suggesting macro trend exposure.
- Correlation with China’s M2 shows BTC could be entering a cyclical bullish breakout.
- Surge in worldwide liquidity boosts risk appetite, driving bullish sentiment toward BTC.
Bitcoin’s price action is increasingly mirroring the expansion of global money supply, according to recent analyst insights. As major economies continue injecting liquidity into their financial systems, Bitcoin appears to be capitalizing on this macroeconomic trend.
With the United States, China, Japan, and the European Union all reporting near or new all-time highs in money supply, analysts are now closely monitoring how Bitcoin’s movements align with fiat currency expansion. This rising tide of liquidity, which many believe precedes a global economic boom, is positioning Bitcoin as a potential beneficiary and a hedge against fiat debasement.
Bitcoin vs. China’s M2: Historical Patterns Suggest Upside
Cryptollica, a market analyst, has highlighted a compelling correlation between Bitcoin and China’s M2 money supply. When BTC is measured against China’s M2, the chart reveals cyclical patterns driven by macro liquidity trends.
Each bullish phase historically begins after a breakout from a long-term downtrend and a retest of major horizontal support. These phases are punctuated by sharp retracements and resistance tests, noted in four distinct periods on the chart.
Significantly, each consolidation cycle has lasted around 180 bars, indicating a consistent time-based symmetry. This consistency adds weight to the possibility of an upcoming rally. Recently, Bitcoin formed a base near 2.87 billion in this chart setup and has broken above key resistance.
That move may signal the beginning of another major upward leg. As China’s liquidity continues to expand now hitting a record 280 trillion Yuan Bitcoin’s role as a hedge asset appears to be strengthening.
Bitcoin vs. China M2 money supply 🇨🇳🐉 pic.twitter.com/OsHfh6EJgw
— Cryptollica⚡️ (@Cryptollica) April 16, 2025
Worldwide Liquidity Surge Fuels Bullish Sentiment
According to Crypto Rover, the recent spike in global money supply is a major bullish catalyst for cryptocurrencies. On April 17, 2025, data showed the US money supply (M2) climbing to $21.5 trillion, just short of its 2022 peak. Meanwhile, Japan reported 1,120 trillion Yen and the EU’s M3 supply reached a record 14.8 trillion Euros.
WORLDWIDE MONEY SUPPLY IS SURGING 🚨
— Crypto Rover (@rovercrc) April 17, 2025
🇺🇸 MONEY SUPPLY: CLOSE TO NEW ATHS
🇨🇳 MONEY SUPPLY: AT NEW ATHS
🇯🇵 MONEY SUPPLY: CLOSE TO NEW ATHS
🇪🇺 MONEY SUPPLY: AT NEW ATHS
ECONOMIC BOOM INCOMING.
BULLISH FOR #BITCOIN & CRYPTO 🚀 pic.twitter.com/tsZ3TOVCJf
This synchronized expansion across all major economies signals increased liquidity in the system. Consequently, many investors see it as a tailwind for risk assets, particularly Bitcoin. With BTC trading at $84,783.71 and posting a 3.69% gain over the past week, the market appears to be responding positively.
