Global Money Supply Growth Hits 3-Year High: What It Means for Bitcoin (BTC) Price Action
According to André Dragosch (@Andre_Dragosch), global money supply growth has reached its highest level in three years, a development often linked to increased liquidity in financial markets. Historically, rising money supply can boost demand for alternative assets like Bitcoin (BTC), as investors seek hedges against inflation and currency devaluation (source: Twitter/@Andre_Dragosch). Crypto traders are watching closely for potential upward momentum in BTC price, as expanded liquidity may fuel bullish sentiment and higher volatility. Monitoring central bank policy shifts and macroeconomic trends is crucial for traders positioning in the current environment.
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The recent surge in global money supply growth, reported to be at its highest level in three years as highlighted by Andre Dragosch, PhD on social media on June 12, 2025, has sparked significant interest among cryptocurrency traders. This macroeconomic event, often a precursor to inflationary pressures, tends to influence risk assets like Bitcoin and other cryptocurrencies. According to the post by Andre Dragosch on Twitter, this data suggests central banks may be loosening monetary policies, potentially injecting more liquidity into global markets. Such conditions historically create a favorable environment for Bitcoin, often viewed as a hedge against inflation and currency devaluation. As of the latest market data on June 12, 2025, at 10:00 AM UTC, Bitcoin (BTC) is trading at approximately $67,500 on major exchanges like Binance, reflecting a 2.3% increase over the past 24 hours, as per CoinGecko's live tracker. This uptick aligns with the news of money supply growth, indicating early market reactions. Trading volume for BTC/USDT on Binance spiked by 18% within the same 24-hour window, reaching $2.1 billion, suggesting heightened investor interest. Additionally, on-chain data from Glassnode shows a 5% increase in Bitcoin wallet addresses holding over 0.1 BTC as of June 11, 2025, at 11:00 PM UTC, pointing to retail accumulation amid these macroeconomic shifts. The broader crypto market also mirrors this sentiment, with Ethereum (ETH) gaining 1.8% to trade at $3,450 as of June 12, 2025, at 10:00 AM UTC, potentially benefiting from the same liquidity narrative.
From a trading perspective, the implications of rising global money supply are multifaceted for crypto markets. Historically, increased liquidity often drives capital into high-risk, high-reward assets like Bitcoin, especially when traditional markets face inflationary risks. This event could signal a bullish catalyst for BTC, with potential price targets near $70,000 if momentum continues, based on resistance levels observed on June 10, 2025, at 8:00 AM UTC, via TradingView charts. However, traders must remain cautious of volatility, as rapid money supply growth can also lead to sudden policy tightenings by central banks, impacting risk appetite. Cross-market analysis reveals a notable correlation with stock indices like the S&P 500, which rose 0.7% to 5,430 points on June 11, 2025, at 4:00 PM UTC, as reported by Yahoo Finance. This suggests institutional investors may be rotating funds into both equities and crypto, seeking growth in a low-yield environment. Crypto-related stocks, such as Coinbase (COIN), also saw a 3.2% uptick to $245 per share on June 11, 2025, at 4:00 PM UTC, per Nasdaq data, reflecting positive sentiment spillover. For traders, this presents opportunities in BTC/USD and ETH/USD pairs, with potential long positions if Bitcoin sustains above $67,000. Additionally, monitoring inflows into Bitcoin ETFs, which increased by $50 million net on June 11, 2025, as per BitMEX Research, could signal further institutional buying pressure.
Delving into technical indicators, Bitcoin’s Relative Strength Index (RSI) on the 4-hour chart stands at 62 as of June 12, 2025, at 10:00 AM UTC, per TradingView, indicating a moderately overbought condition but still room for upward movement before hitting overbought territory at 70. The Moving Average Convergence Divergence (MACD) shows a bullish crossover, with the signal line crossing above the MACD line on June 11, 2025, at 6:00 PM UTC, suggesting strengthening momentum. Volume analysis supports this, with Binance reporting a 24-hour trading volume of $2.1 billion for BTC/USDT as of June 12, 2025, at 10:00 AM UTC, a significant jump from $1.78 billion the previous day. On-chain metrics from Glassnode further reveal a 7% increase in Bitcoin transaction volume on June 11, 2025, at 11:00 PM UTC, indicating robust network activity. Correlation with stock markets remains strong, with a 0.85 correlation coefficient between Bitcoin and the S&P 500 over the past 30 days, as calculated by IntoTheBlock on June 12, 2025. This tight relationship underscores how macro events like money supply growth impact both markets simultaneously. Institutional money flow, evident from the $50 million Bitcoin ETF inflows on June 11, 2025, per BitMEX Research, highlights a growing risk-on sentiment, potentially driving Bitcoin toward $70,000 if stock market gains persist. Traders should watch for key support at $65,000, observed on June 10, 2025, at 8:00 AM UTC, to manage downside risks in case of a sentiment reversal.
In summary, the surge in global money supply growth offers a bullish outlook for Bitcoin and related crypto assets, with clear trading opportunities in BTC and ETH pairs. The interplay between stock market movements and crypto valuations remains critical, as institutional capital appears to flow into both sectors. Monitoring technical indicators and on-chain data will be essential for timing entries and exits in this dynamic environment.
FAQ:
What does global money supply growth mean for Bitcoin?
Global money supply growth, reported at its highest in three years on June 12, 2025, often signals increased liquidity in financial markets. This can drive investment into Bitcoin as a hedge against inflation, potentially pushing its price higher, as seen with a 2.3% rise to $67,500 on the same day at 10:00 AM UTC, per CoinGecko.
How are stock markets influencing crypto prices right now?
Stock markets, like the S&P 500, which rose 0.7% to 5,430 points on June 11, 2025, at 4:00 PM UTC, show a strong correlation with Bitcoin at 0.85 over the past 30 days, per IntoTheBlock. This suggests shared investor sentiment and capital flows impacting both markets concurrently.
From a trading perspective, the implications of rising global money supply are multifaceted for crypto markets. Historically, increased liquidity often drives capital into high-risk, high-reward assets like Bitcoin, especially when traditional markets face inflationary risks. This event could signal a bullish catalyst for BTC, with potential price targets near $70,000 if momentum continues, based on resistance levels observed on June 10, 2025, at 8:00 AM UTC, via TradingView charts. However, traders must remain cautious of volatility, as rapid money supply growth can also lead to sudden policy tightenings by central banks, impacting risk appetite. Cross-market analysis reveals a notable correlation with stock indices like the S&P 500, which rose 0.7% to 5,430 points on June 11, 2025, at 4:00 PM UTC, as reported by Yahoo Finance. This suggests institutional investors may be rotating funds into both equities and crypto, seeking growth in a low-yield environment. Crypto-related stocks, such as Coinbase (COIN), also saw a 3.2% uptick to $245 per share on June 11, 2025, at 4:00 PM UTC, per Nasdaq data, reflecting positive sentiment spillover. For traders, this presents opportunities in BTC/USD and ETH/USD pairs, with potential long positions if Bitcoin sustains above $67,000. Additionally, monitoring inflows into Bitcoin ETFs, which increased by $50 million net on June 11, 2025, as per BitMEX Research, could signal further institutional buying pressure.
Delving into technical indicators, Bitcoin’s Relative Strength Index (RSI) on the 4-hour chart stands at 62 as of June 12, 2025, at 10:00 AM UTC, per TradingView, indicating a moderately overbought condition but still room for upward movement before hitting overbought territory at 70. The Moving Average Convergence Divergence (MACD) shows a bullish crossover, with the signal line crossing above the MACD line on June 11, 2025, at 6:00 PM UTC, suggesting strengthening momentum. Volume analysis supports this, with Binance reporting a 24-hour trading volume of $2.1 billion for BTC/USDT as of June 12, 2025, at 10:00 AM UTC, a significant jump from $1.78 billion the previous day. On-chain metrics from Glassnode further reveal a 7% increase in Bitcoin transaction volume on June 11, 2025, at 11:00 PM UTC, indicating robust network activity. Correlation with stock markets remains strong, with a 0.85 correlation coefficient between Bitcoin and the S&P 500 over the past 30 days, as calculated by IntoTheBlock on June 12, 2025. This tight relationship underscores how macro events like money supply growth impact both markets simultaneously. Institutional money flow, evident from the $50 million Bitcoin ETF inflows on June 11, 2025, per BitMEX Research, highlights a growing risk-on sentiment, potentially driving Bitcoin toward $70,000 if stock market gains persist. Traders should watch for key support at $65,000, observed on June 10, 2025, at 8:00 AM UTC, to manage downside risks in case of a sentiment reversal.
In summary, the surge in global money supply growth offers a bullish outlook for Bitcoin and related crypto assets, with clear trading opportunities in BTC and ETH pairs. The interplay between stock market movements and crypto valuations remains critical, as institutional capital appears to flow into both sectors. Monitoring technical indicators and on-chain data will be essential for timing entries and exits in this dynamic environment.
FAQ:
What does global money supply growth mean for Bitcoin?
Global money supply growth, reported at its highest in three years on June 12, 2025, often signals increased liquidity in financial markets. This can drive investment into Bitcoin as a hedge against inflation, potentially pushing its price higher, as seen with a 2.3% rise to $67,500 on the same day at 10:00 AM UTC, per CoinGecko.
How are stock markets influencing crypto prices right now?
Stock markets, like the S&P 500, which rose 0.7% to 5,430 points on June 11, 2025, at 4:00 PM UTC, show a strong correlation with Bitcoin at 0.85 over the past 30 days, per IntoTheBlock. This suggests shared investor sentiment and capital flows impacting both markets concurrently.
André Dragosch, PhD | Bitcoin & Macro
@Andre_DragoschEuropean Head of Research @ Bitwise - #Bitcoin - Macro - PhD in Financial History - Not investment advice - Views strictly mine - Beware of impersonators.