Could M2 supply help Bitcoin price increase 6 times by 2026?

2025-10-23 03:36:16

Abstract generation in progress

Bitcoin (BTC) could reach 500,000 USD if this reaction repeats before the explosive growth of the global M2 money supply.

Analysis from Jesse Myers, co-founder of Onramp Bitcoin, published on platform X on Tuesday, has confirmed the largest increase in M2 supply since the COVID-19 pandemic began.

Bitcoin and M2 Supply: Will the 2020 Scenario Recur?

Bullish investors can expect significant profits if the price movement of BTC resembles what happened at the end of 2020. The global M2 supply, which typically leads the upward trend of Bitcoin with a certain lag, is currently increasing at an unprecedented rate since the market crash due to COVID-19 in March 2020.

“The money printing has never been as vigorous since COVID. Currently, the global M2 money supply is about 137 trillion USD, compared to 129 trillion USD just 6 months ago,” Myers said, along with aggregated data from TradingView.

“Gold prices have risen in response. Bitcoin seems to be slowing down, just like it did in 2020.”

The 6.2% increase in M2 supply since March this year indicates that there is still a gap to be bridged before reaching the levels of 2020. Myers also noted that the supply had increased by 21% by the end of that year.

“With a slight delay, Bitcoin recorded a price increase of 6 times from Q4 2020 to Q1 2021,” he continued.

“What will happen in the next 6 months?”

Although a similar move may seem unfeasible, if it occurs, it could push BTC past the $500,000 mark by 2026.

US M2 money supply | Source: Barchart/Last week, the M2 money supply in the US reached a new record high, exceeding 22 trillion USD, according to data from Barchart.

BTC price “is about to explode” as money printing continues

In response, asset manager Lawrence Lepard predicted that this trend would create a ripple effect on Bitcoin.

Discussing this issue, Lepard describes M2 as “the actual inflation rate,” and dismisses the inflation targets of central banks, such as the 2% target of the U.S. Federal Reserve.

As Coinphoton reported, there are many doubts about the ability to restore the prolonged inflation rate of 2%.

Meanwhile, the market is predicting that interest rate cuts will spur growth in 2025, including the Fed meeting next October.

Mr. Teacher

BTC-0.69%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.