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Bitcoin has not tracked global M2 money supply with such a large lag since May, observed the head of growth at Theya, Joe Consorti, on Wednesday.<\/p>\n
BTC is now lagging behind money supply growth by around 70 days, whereas gold has maintained an almost perfect correlation.<\/p>\n
It is a tale of \u201ccross-asset correlations amid secular dollar weakness and geopolitical risk,\u201d said Consorti, who added, \u201cgold is high beta risk-off, BTC is high beta risk-on.\u201d<\/p>\n
Bitcoin has been trading more like a high-risk tech stock rather than a safe haven inflation hedge.<\/p>\n
Global money supply increases when central banks print<\/a> more fiat for monetary easing policies. This increases liquidity in the financial system, which enables more money for allocation to riskier assets such as crypto.<\/p>\n Bitcoin has not tracked global M2 with a ~70-day lag since early May.<\/p>\n Gold has followed global M2 with near 1:1 sensitivity.<\/p>\n A tale of cross-asset correlations amidst secular dollar weakness and geopolitical risk.<\/p>\n Gold is high beta risk-off, BTC is high beta risk-on. pic.twitter.com\/zUmncKyXeA<\/a><\/p>\n \u2014 Joe Consorti \u26a1\ufe0f (@JoeConsorti) September 24, 2025<\/a><\/p>\n<\/blockquote>\n The M2 money supply is a measure of the total amount of liquid money available in the economy, including cash, checking deposits, savings accounts, and other short-term investments.<\/p>\n It has reached an all-time high in the United States this week of around $22.2 trillion, according<\/a> to the Atlanta Federal Reserve.<\/p>\n M2 expansion started in early 2024 and has increased by more than 7% since then. It has been described as \u201crelentless debasement baked into the system,\u201d as every new dollar printed dilutes the old ones.<\/p>\n Additionally, the US dollar has weakened<\/a> significantly this year. The dollar index (DXY) \u2013 a measure of the greenback against a basket of currencies \u2013 has slumped 12% since the beginning of this year to its lowest level since early 2022 this month.<\/p>\n This should all be gravy for Bitcoin, but the asset has remained sideways for the past three months and is 9% down from its all-time high.<\/p>\n Goldbug Peter Schiff claimed<\/a> it was already in a bear market, stating that it has dropped 20% against gold since its August peak. What the crypto critic failed to mention is that BTC has gained 78% over the past 12 months, whereas gold is up 42%.<\/p>\n Whether you like it or not, bitcoin\u2019s value is very much linked to its scarcity. Fiat will be printed, bitcoin will rise. pic.twitter.com\/iJ854qXw33<\/a><\/p>\n \u2014 PlanB (@100trillionUSD) September 24, 2025<\/a><\/p>\n<\/blockquote>\n BTC closed in<\/a> on $114,000 during late Wednesday trading but faced resistance there and has fallen back to $111,700 after finding support a little lower at the time of writing.<\/p>\n The asset is down 4.5% over the past week and is holding at a key support level. Without further momentum, the selling pressure is likely to increase, deepening the September correction.<\/p>\n LIMITED OFFER for CryptoPotato readers at Bybit: Use this link<\/a> to register and open a $500 FREE position on any coin!<\/b><\/p>\n<\/div>\n<\/div>\n <\/p><\/div>\n\n
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Bitcoin Price Outlook<\/h2>\n
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