Bitcoin Loses Correlation With M2 Money Supply, Which Hits ATH

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 ￰0￱ is now lagging behind money supply growth by around 70 days, whereas gold has maintained an almost perfect ￰1￱ is a tale of “cross-asset correlations amid secular dollar weakness and geopolitical risk,” said Consorti, who added, “gold is high beta risk-off, BTC is high beta risk-on.” Bitcoin has been trading more like a high-risk tech stock rather than a safe haven inflation ￰2￱ Liquidity Not Benefitting Bitcoin Global money supply increases when central banks print more fiat for monetary easing ￰3￱ increases liquidity in the financial system, which enables more money for allocation to riskier assets such as ￰4￱ has not tracked global M2 with a ~70-day lag since early ￰5￱ has followed global M2 with near 1:1 sensitivity.

A tale of cross-asset correlations amidst secular dollar weakness and geopolitical ￰6￱ is high beta risk-off, BTC is high beta ￰7￱ — Joe Consorti (@JoeConsorti) September 24, 2025 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 ￰8￱ has reached an all-time high in the United States this week of around $22.2 trillion, according to the Atlanta Federal Reserve. M2 expansion started in early 2024 and has increased by more than 7% since ￰9￱ has been described as “relentless debasement baked into the system,” as every new dollar printed dilutes the old ones.

Additionally, the US dollar has weakened significantly this ￰10￱ dollar index (DXY) – a measure of the greenback against a basket of currencies – has slumped 12% since the beginning of this year to its lowest level since early 2022 this ￰11￱ 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 ￰12￱ Peter Schiff claimed it was already in a bear market, stating that it has dropped 20% against gold since its August ￰13￱ the crypto critic failed to mention is that BTC has gained 78% over the past 12 months, whereas gold is up 42%. Whether you like it or not, bitcoin’s value is very much linked to its ￰14￱ will be printed, bitcoin will ￰15￱ — PlanB (@100trillionUSD) September 24, 2025 Bitcoin Price Outlook BTC closed in 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 ￰16￱ asset is down 4.5% over the past week and is holding at a key support ￰17￱ further momentum, the selling pressure is likely to increase, deepening the September correction.