Bitcoin News

Story: Global Money Supply Surges, Bitcoin’s Scarcity Shines

By MikeT

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The global financial landscape has seen a dramatic increase in the money supply in 2025. In just the first few months of this year, the world’s total money supply, measured by…

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Understanding M2 and the Global Money Supply Surge

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M2 is a measure of the total money supply that includes physical currency, checking accounts, and other easily liquidated financial assets.

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In contrast, Bitcoin operates on a fixed supply of 21 million coins, meaning its total number of coins cannot be increased.

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Bitcoin's Scarcity in a Fiat-Flooded Economy

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Bitcoin’s scarcity and decentralized nature have made it an increasingly attractive asset in a world where fiat currencies are subject to inflationary pressures.

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Historically, Bitcoin’s price has shown a strong correlation with the growth of global liquidity.

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Bitcoin’s Price Surge Amid Economic Uncertainty

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Earlier in 2025, Bitcoin soared past its all-time high of $109,000, a milestone driven by growing worries over currency devaluation and central banks’ expansive monetary policies.

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However, Bitcoin’s price has since pulled back, currently trading around $84,000. This dip is partly attributed to heightened global trade tensions, including renewed tariff…

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Despite these fluctuations, Bitcoin's fundamental scarcity remains a key driver of its long-term value proposition.

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The growing gap between the expansion of global money supply and Bitcoin’s finite supply suggests that Bitcoin’s role as a hedge against inflation could become more significant…

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André Dragosch, Head of Research at Bitwise, recently shared data highlighting this divergence in an April 2025 post, noting that Bitcoin's scarcity makes it an attractive asset…

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The Future of Bitcoin: More Than Just a Speculative Asset

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While Bitcoin remains a highly speculative asset, its growing popularity among institutional investors suggests that its role in the global financial system is evolving.

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