Jamie Coutts stated that approximately $1.1 trillion has been transferred to Bitcoin and other digital assets worldwide in the last two years. This process has strengthened the role of digital assets in the financial system. Real Vision’s chief crypto analyst stated that while the price of Bitcoin rose to $96,511, the M2 money supply increased from 94 trillion to 105 trillion. During this period, the market value of Bitcoin increased fivefold, reaching $1.5 trillion.
Distribution of New Money Supply
Coutts stated that 10% of the newly created money supply has moved out of the fiat system and into global reserve assets like Bitcoin, and other assets like gold and stocks have also absorbed the new money. “That is, 10% of the global money supply has moved out of the fiat system and into digital reserve assets like Bitcoin. Similarly, other assets like gold and stocks have also absorbed this new money,” he said.
Future Projections
Coutts said in his statement that he expects the global M2 money supply to rise to approximately $118 trillion by the end of 2026. He emphasized that this increase could contribute to the value of Bitcoin.
Economic Potential and Solution Proposal
The analyst stated that Bitcoin’s annual growth is faster than the US Federal Reserve’s balance sheet, M2 money supply and real wages, and that Bitcoin could offer economic solutions for many people. “For individuals, companies and states, Bitcoin could be one of the few ways out of the current economic chaos,” he said.
Bitcoin is currently trading at $98,035 and is up 2.94% in the last 24 hours. The increasing share of Bitcoin and other digital assets in the global money supply could signal major changes in economic dynamics. Investors and economists will continue to monitor the long-term impact and sustainability of these developments.
