Is the Alarming Growth in Global Money Setting Bitcoin Up for a Massive Rally?
Some financial analysts are watching for a significant increase in Bitcoin’s value, possibly as much as six times its current price, by 2026. This prediction is tied to a major increase in the world’s money supply, a trend not seen since the economic response to the COVID-19 pandemic in 2020. While past results are no guarantee, the connection between the money supply and Bitcoin’s price has been strong before.
The Link Between Money Supply and Bitcoin
The global M2 money supply is a broad measure of all the cash and easily accessible money in the world’s economy. Recently, this figure grew from $129 trillion to $137 trillion in just six months. This rapid 6.2% increase is what has caught the attention of analysts.
Jesse Myers, the co-founder of Onramp Bitcoin, pointed out that the last time the money supply grew this fast was in 2020. During that period, a 21% increase in the M2 supply was followed by a sixfold surge in Bitcoin’s price, which climbed from around $10,000 to nearly $60,000 within months. If this pattern holds, a similar rally could be on the horizon, potentially pushing Bitcoin’s price to $500,000.
Why More Money Can Affect Bitcoin’s Price
Bitcoin is often called a “hard asset” because its supply is limited; there will only ever be 21 million Bitcoin. When central banks create more money, the value of that money can decrease over time. This is what many people refer to as inflation. As the supply of money grows, it can take more of that money to buy an asset with a fixed supply, like Bitcoin.
Other assets have already started to respond to the recent increase in money supply. Gold, for example, has seen its price climb quickly. Bitcoin sometimes reacts more slowly to these changes, but the expanding money supply is often seen as a positive sign for its value in the long term.
2026 Bitcoin Price Predictions
Several analysts have offered forecasts for what this could mean for Bitcoin’s price in 2026. The predictions vary, but many are optimistic, citing the growth in M2, increased demand from institutional investors, and the effects of Bitcoin’s “halving” events, which reduce the rate at which new bitcoins are created.
What to Consider
While the historical data is compelling, the market today is different from 2020. Several factors could change the outcome:
- Interest Rates Central banks are expected to cut interest rates in 2025, which could fuel the rise of assets like Bitcoin.
- Regulations Stricter rules for cryptocurrencies are now in place, which could influence how quickly and how high prices move.
- Market Sentiment Investor mood plays a big role. Positive news can lead to more buying, while negative news can cause prices to fall.
For investors, the key takeaway is that the global money supply is a powerful force to watch. A growing M2 has historically helped push Bitcoin’s price higher. While a sixfold increase is a bold prediction, the underlying conditions suggest a positive outlook for Bitcoin in the coming years.