Rare Fiat Signal Flashes — Is Bitcoin Poised for a 500% Surge?
A unique 9% annual growth rate was achieved by the Global Money Supply. Bitcoin's previous several such signals went like this.
Global Money Supply Is Rising Sharply
Charles Edwards, founder of Capriole Investments, discussed the current Global Money Supply trend on X. “Global Money Supply” estimates the total fiat supply (priced in US Dollars) supplied by the top nations worldwide.
Edwards sent this graphic showing metric increase year-over-year:
The graph shows that fiat supply is rising as the metric's value rises. “Central banks are flooding the market with fiat money,” says the expert. The indicator is about 9%, indicating a 9% increase in the Global Money Supply during the last year. “This is extreme and rare,” adds Edwards.
The Capriole Investments founder also included daily Bitcoin price history in the graphic. The indicator has previously surged to this level before big bull rallies for the cryptocurrency during the ensuing year.
The August 2017 signal caused a 663% rise, the November 2017 one 136%, and the June 2020 one 580%. The average gain is 460%.
Thus, global money printer activity seems to be good for Bitcoin. As the Global Money Supply rises again, it remains to be seen whether BTC will benefit again in the following year.
In an X post, CryptoQuant Head of Research Julio Moreno noted that the Bitcoin network recently experienced its highest movement of coins older than 10 years.
In all, 81,000 BTC worth $8.8 billion were traded in this latest old currency boom. Old coins move when sold, therefore these transactions may constitute profit-taking.
Bitcoin demand is measured by comparing output (mining issuance) to inventory (supply inactive over 1 year). “Despite 80,000 BTC moving, Bitcoin’s Apparent Demand is still bullish,” adds the expert.
