Bitcoin and M2 Growth Global of YoY

The Global Money Supply (M2) Growth graph shows the money supply growth of the top 21 central banks versus the price of Bitcoin.

The monetary mass or global liquidity includes cash, deposits in checks, savings, market accounts, funds and deposits of less than $100,000.

If global liquidity is increasing it means that major central banks are making more money available to their country. They do this by reducing interest rates or by purchasing government bonds and other securities to increase the money supply.

If we compare the price of BTC with the M2 growth rate of the central banks (FED, ECB, PBoC, BoJ...) it is observed that bitcoin moves together as the growth rate of the M2 money supply. Historically, Bitcoin bull markets have coincided with the expansion of global liquidity.

The money supply data has been taken from 21 central banks.

From North America Data: USM and CAM
From non-eurozone Europe: CHM, GBM, FIPOP and RUM
From Pacific: NZM
From Asia: CNM, TWM, HKM, INM, JPM, PHM and SGM
From Latin America: BRM, COM and MXM
From Middle East: AEM and TRM
From Africa: ZAM