In January, the U.S. money supply (M2) rose by 3.9% year-over-year, marking the fastest pace in 30 month
That’s just $16 billion shy of the all-time high set in April 2022. But it’s not just the U.S. that’s ramping up the money supply.
Globally, the total money supply has increased by about $2.0 trillion over the past two months. It reached its highest point since September 2024. So, what’s the big deal? Well, when the money supply grows, it often raises concerns about inflation. More money in the system means more cash chasing the same goods, driving prices up. But for the crypto industry, this trend could be a blessing in disguise.
As fiat currencies flood the market, many investors are looking for alternative stores of value. This is where cryptocurrencies like Bitcoin and Ethereum come in. Digital assets are often seen as hedges against inflation. Unlike traditional currencies, they have a fixed supply or use decentralized networks to control their issuance. With the dollar losing some of its purchasing power, investors may turn to cryptocurrencies as a way to protect their wealth. This is where the potential for growth in the crypto sector lies.
Bitcoin, in particular, is often referred to as “digital gold”. So, its role as a store of value becomes even more relevant as concerns about inflation grow. With money supply expanding both in the U.S. and globally, demand for decentralized and inflation-resistant assets could continue to rise.
As the money supply continues to grow, we could see more interest in alternative assets, particularly cryptocurrencies. This presents a golden opportunity for those involved in the digital space. Some might argue that inflation is just around the corner. The crypto market offers a solid hedge against financial risks.
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
Bitcoin fell to $75,242 after the Federal Reserve raised rates by 25 basis points, while another 2026 hike and the failed CLARITY Act vote add pressure to crypto markets.
BTC
The Federal Reserve raised rates by 25 basis points to 3.75% - 4%, its first hike since July 2023, while Bitcoin remained near $75,700 after a volatile reaction.
BTC
Ripple says the failed CLARITY Act vote did not change XRP’s established legal position, while Strategy argues Bitcoin already has regulatory clarity in the U.S.
XRPUS money supply growth is accelerating: M2 money supply rose +3.9% year-over-year in January, the fastest pace in 30 months. This is the 11th straight month of money supply expansion. The amount of US Dollars in circulation has reached $21.6 trillion, just $16 billion below an Show more
You don’t need Josh to tell you that we‘re likely rallying back to 100k USD.
