In response to the news that the U.S. M2 money supply has reached an unprecedented $22.7 trillion, Tyler Winklevoss, co-founder of Gemini, expressed his thoughts on X (formerly known as Twitter).
“Impressive. That’s quite a marketing budget for Bitcoin,” Winklevoss commented.
Impressive. That’s quite a marketing budget for bitcoin https://t.co/bTTfQU7JZw
— Tyler Winklevoss (@tyler) April 6, 2026
“Marketing Budget”
The M2 metric is a comprehensive indicator of the money supply that encompasses cash and checking deposits among other forms. When the Federal Reserve increases the M2 supply, it effectively reduces the purchasing power of existing dollars in circulation.
On the other hand, Bitcoin is designed with a capped maximum issuance of 21 million coins that cannot be changed. Thus, every time new trillions are printed by the government, it serves as an “advertisement” for assets with fixed supplies amidst rising inflation worries.
The Relationship Between Bitcoin and Global M2
There exists a significant statistical relationship between Global M2 and Bitcoin’s price movements; Bitcoin functions as an extremely responsive liquidity absorber.
The price fluctuations of this leading cryptocurrency closely mirror changes in global fiat liquidity levels. This time around, BTC may find itself playing “catch-up” to gold’s performance relative to fiat currency expansion.
Last year, Jurrien Timmer from Fidelity Investments presented an intriguing chart illustrating Nominal M2 alongside both Gold and Bitcoin over extensive historical periods.
Finally shown below is gold’s price compared to M2 along with Bitcoin’s performance. It’s fascinating how there’s a linear correlation between gold and M2 while there seems to be more complexity in its relationship with Bitcoin—a different player on the same team./END pic.twitter.com/3NR0Npj9ub
— Jurrien Timmer (@TimmerFidelity) February 21, 2025