Question 1

What does the BTC & Global M2 chart show?

Accepted Answer

This chart overlays three series: Bitcoin price on a logarithmic scale (golden line), global M2 money supply in USD trillions (cyan line), and global M2 year-over-year growth in % (green/red bars). It allows you to visualize the correlation between global monetary expansion and Bitcoin bull cycles.

Question 2

What is global M2 and why does it matter for Bitcoin?

Accepted Answer

Global M2 is the sum of broad money supply from the major economies: USA, Eurozone, Japan, UK, and China. When central banks expand M2 (print money), excess liquidity tends to flow into risk assets like Bitcoin. Historically, peaks in M2 YoY growth have coincided with BTC ATHs.

Question 3

How is global M2 calculated?

Accepted Answer

The M2 of the US (FRED: M2SL), Eurozone (MABMM301EZM189S), Japan (MABMM301JPM189S), and UK (MABMM301GBM189S) are summed, converting each to USD using monthly exchange rates from FRED. For China, whose FRED series has data up to 2018, it is extrapolated using a historical growth rate of 9% per year.

Question 4

What do the green and red M2 YoY growth areas mean?

Accepted Answer

The green area shows months where global M2 grew compared to the previous year (monetary expansion). The red area shows contraction months. Periods of highest M2 growth (tall green peaks) have coincided with Bitcoin's most intense bull markets (2017, 2020-2021).

FAQ — BTC & Global M2