$BTC Rare Signs of Fiat Currency Flash — Is Bitcoin Ready for a 500% Increase?

A unique annual growth rate of 9% has been achieved by the Global Money Supply. Previous signals from Bitcoin have been like this.

The Global Money Supply Is Rapidly Increasing

Charles Edwards, founder of Capriole Investments, discussed the current trend of the Global Money Supply on X. “Global Money Supply” estimates the total fiat supply (priced in US Dollars) provided by the major nations of the world.

Edwards sent this chart showing the year-over-year metric increase:

The chart shows that the fiat supply is increasing as the metric 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 over the past year. “This is extreme and rare,” adds Edwards.

The founder of Capriole Investments also included the daily price history of Bitcoin in the chart. The indicator has risen to this level before major bullish rallies for the cryptocurrency in the following year.

The signal from August 2017 caused a 663% increase, the one from November 2017 136%, and the one from June 2020 580%. The average gain is 460%.

Thus, global money printer activity seems to be good for Bitcoin. As the Global Money Supply increases again, it remains to be seen whether BTC will benefit again in the following year.

In a post on X, the Head of Research at CryptoQuant, Julio Moreno, noted that the Bitcoin network recently experienced its largest movement of coins over 10 years old.

In total, 81,000 BTC worth $8.8 billion were traded in this recent old coin boom. Old coins move when sold, so these transactions may constitute profit-taking.

The demand for Bitcoin is measured by comparing production (mining issuance) to stock (inactive supply for more than 1 year).