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.
BTC is now lagging behind money supply growth by around 70 days, whereas gold has maintained an almost perfect correlation.
It 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 hedge.
More Liquidity Not Benefitting Bitcoin
Global money supply increases when central banks print 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.
Bitcoin has not tracked global M2 with a ~70-day lag since early May.
Gold has followed global M2 with near 1:1 sensitivity.
A tale of cross-asset correlations amidst secular dollar weakness and geopolitical risk.
Gold is high beta risk-off, BTC is high beta risk-on. pic.twitter.com/zUmncKyXeA
— 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 investments.
It 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 then. It 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 year. The 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 month.
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.
Goldbug Peter Schiff claimed 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%.
Whether you like it or not, bitcoin’s value is very much linked to its scarcity. Fiat will be printed, bitcoin will rise. pic.twitter.com/iJ854qXw33
— 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 writing.
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.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Bitdeer clears out its Bitcoin reserves and pivots to AI, signing a deal with Norway’s DCI to build the country’s largest AI data center
Bitcoin mining company Bitdeer announced that it has reached an agreement with a Norwegian contractor to retrofit existing facilities into Norway’s largest AI data center, supporting NVIDIA’s AI technology. At the same time, Bitdeer is clearing its Bitcoin reserves and plans to raise $300 million by issuing convertible preferred notes to advance the transformation of high-performance computing and AI infrastructure.
GateNews13m ago
Strive and Tuttle Capital Apply to the U.S. SEC to Launch a Bitcoin Preferred Stock ETF
Bitcoin Treasury Bonds Company Strive and Tuttle Capital Management filed an application with the U.S. SEC, planning to launch a "T-Strive Digital Credit ETF" and list it on the Cboe exchange. The ETF invests in preferred stock issued by the Bitcoin Treasury Bonds Company through swaps and leverage instruments, and holds 13,310.9 BTC.
GateNews13m ago
Peter Brandt, Polymarket traders don’t see new Bitcoin highs this year
It could be more than a year before Bitcoin regains its all-time high of $126,100, recorded in October last year, according to veteran trader Peter Brandt.
“I do not see a new price high in 2026,” Brandt told Cointelegraph. “Not until maybe the second quarter of 2027,” he said, though he also
Cointelegraph54m ago
Bitcoin’s Most Dangerous Pattern Just Triggered: Will BTC Dump to $26K Next?
Although bitcoin has already dumped by over 50% from its all-time high of over $126,000 marked in October to a multi-year low of $60,000, the asset’s troubles might not be over, warned Merlijn The Trader.
The popular analyst indicated that the “most dangerous bitcoin pattern just completed phase
CryptoPotato55m ago
