Gold is currently facing a pivotal moment when evaluated against the U.S. money supply (M2SL). It is testing a threshold that it last encountered in 2011, a level that has not been exceeded since the 1970s, during which time its price surged over threefold to reach an unprecedented $700 per ounce over several years.
On the other hand, bitcoin BTC$87,315.12, often dubbed as digital gold by its advocates, has seen a decline towards a support level reminiscent of the lows experienced during April’s “tariff tantrum.”
In 2011, gold was priced at $1,800 per ounce; today it hovers around $4,500. When analyzed alongside the money supply—which encompasses all dollars circulating within the U.S. economy including cash and bank deposits—the current price of gold has reached an area historically recognized as significant resistance.
This year alone, gold has appreciated by 70%. In stark contrast stands bitcoin with an approximate decline of 10%. Nevertheless, bitcoin continues to achieve new highs relative to the U.S. money supply with each cycle; notably, this current support level also corresponds to previous cycle peaks observed in March 2024.
