Bitcoin and Money Supply (M2) by Central Bank
Bitcoin and the Money Supply (M2) are two concepts that are tied to the global monetary system, but represent completely different approaches to how money is managed and distributed.
Money Supply (M2): The Traditional Money Supply
The M2 Money Supply, or the M2 money supply, is a measure used by central banks to assess the amount of money in circulation within an economy.
It includes:
- M1, which comprises cash and demand deposits (money that is easily accessible for spending).
- Short-term deposits and money market funds.
This chart shows each central bank's M2 against the price of BTC.
The chart of the Annual variation of the Money Supply (M2) shows the correlation with the price of bitcoin.