Global Money Supply (M2) Breaking Up.

We Knew This Would Happen Sooner or Later.

Today, the global M2 money supply tracked by Bitcoin Is Data—which consists of the top 5 world central banks plus Brazil—was updated to reflect the latest data as of August 2024.

And, to the surprise of no one, we hit an all-time high in the global M2, ending the period of monetary contraction and starting up the money printers again.

The main component in global M2 is not the US FED, but the People's Bank of China, which is responsible for approximately 45% of the world’s money supply. Recently, China has started implementing several measures to accelerate its base money expansion, which are not yet reflected in the charts.

We all know what happens with monetary expansions: the value of each unit of money in circulation drops, i.e., the price of everything increases. In terms of assets, we know that Bitcoin is the fastest horse in the race. As an illustration, please take a look at the following chart showing the year-over-year percentage change in global M2 and the price of Bitcoin. You can see that they have a high correlation.

That's all for today—have a great one!