The relationship between Bitcoin and global money supply has become one of the most hotly debated topics. As we move through 2025, Bitcoin is getting stronger while global money printing increases.
In this article:
- we'll take a closer look at Lyn Alden's research on the topic,
- evaluate the hot 12-week lead idea,
- use AI and public data to make a 12-month Bitcoin price prediction.
Understanding the M2 Connection
M2 money supply measures the total amount of money available in the economy. It includes cash, checking accounts, savings accounts, and other readily accessible funds. When aggregating M2 from the eight largest economies (US, China, Europe, UK, Japan, Canada, Russia, and Australia), we get a comprehensive view of global money supply.
To understand why M2 matters, let's put it in the context of other monetary aggregates:
M0
The most basic form of money (monetary base). Just physical cash in circulation and money banks keep at the central bank. The foundation that central banks control directly.
M1
M0 plus checking accounts and other highly liquid deposits that can be quickly converted to cash. This measures money people use for daily spending and transactions.
M2
M1 plus savings accounts, money market accounts, and small time deposits. This better reflects the total money available for spending and investment in the economy.
As you go from M0 to M2, you get a bigger and bigger picture of available money. M2 shows the most complete view of money in the system.
When looking at Bitcoin's connection to money policy, M2 matters because it shows all the money that could potentially flow into investments like Bitcoin. Global M2 is measured in U.S. dollars, which tells us both how strong the dollar is and how fast money is being created worldwide.
The core thesis is simple:
When more money gets printed (M2 grows), Bitcoin tends to go up as investors look for alternatives to traditional investments. When money printing slows down or stops, Bitcoin tends to underperform.
