Global money supply has just reached a rare annual growth rate of 9%. Below is the performance of Bitcoin during the most recent occurrences of this signal.
Global Money Supply Is Currently Increasing Significantly
In a new post on X, Capriole Investments founder Charles Edwards discussed the latest trends in Global Money Supply. "Global Money Supply" refers to an index measuring the total amount of fiat money (valued in US dollars) issued by the leading countries in the world.
Below is the chart shared by Edwards, showing data on the annual growth rate of this metric:
As shown in the chart, the value of this metric has recently seen an increase, indicating that fiat money supply is on the rise. "Central banks are flooding the market with fiat money," the analyst noted. Currently, this index is at around 9%, corresponding to a 9% increase in Global Money Supply over the past twelve months. "This is extreme and rare," Edwards said.
In the same chart, the founder of Capriole Investments also attached historical data on daily Bitcoin prices. Interestingly, previous spikes in this data to this level occurred before significant price increases of the cryptocurrency in the following twelve months.
Specifically, the August 2017 signal led to a 663% increase, the November 2017 signal led to a 136% increase, and the June 2020 signal led to a 580% increase. This results in an average increase of 460%.
Therefore, it seems that the money printers are busy around the world, which tends to be bullish for Bitcoin. Considering that the Global Money Supply is once again increasing at a significant rate, we can only wait to see if BTC feels a positive impact once again in the coming year.
In other news, the Bitcoin network has recently witnessed the largest shift ever of coins over ten years old, as CryptoQuant's Head of Research, Julio Moreno pointed out in a post on X.
In total, the latest spike in transactions related to these old coins saw a shift of about 81,000 BTC, worth up to $8.8 billion. Overall, old coins move when they are sold, so these transfers may correspond to profit-taking.
Interestingly, the Clear Demand indicator remains positive for Bitcoin even after these transactions, as Edwards explained in another post on X.
This index measures demand for Bitcoin by comparing output (mined issuance) with inventory (supply inactive for more than 1 year). The analyst stated, "Although 80,000 BTC are moving, the Clear Demand for Bitcoin remains increasing."
