Bitcoin Vs. Global M2 SupplyBitcoin is often compared to traditional fiat currencies in terms of its potential as a hedge against inflation. A key metric to understand this comparison is the M2 money supply—a measure of the money in circulation, including cash, savings deposits, and other liquid assets. The rising M2 supply is often associated with inflationary pressures, as central banks inject liquidity into the economy.
Analysis: As M2 money supply has surged in recent years due to unprecedented monetary stimulus, Bitcoin has often rallied, reflecting its narrative as "digital gold" or an inflation-resistant asset. However, some argue Bitcoin's volatility makes it more of a speculative asset than a reliable store of value
