Bitcoin's Bullish Outlook Amid Global Money Supply Surge and Tariff Impact

By: Eliza Bennet

Bitcoin is poised for a significant rally, reminiscent of previous large-scale gains, as the Global Money Supply shows a rare increase. The latest data reveals a 9% surge in the global fiat supply, a development that has historically preceded exponential Bitcoin growth. Analysts cite past instances such as August 2017, when Bitcoin surged by 663%, and June 2020, with a 580% spike, both following similar money supply expansions. This trend suggests a potentially bullish period for Bitcoin, which has been trading with increased momentum, influenced further by upcoming economic developments.

In addition to the money supply dynamics, Bitcoin is nearing a new all-time high, influenced by key economic events like the U.S. trade tariff deadline. Analysts are optimistic that the current environment, coupled with the upcoming "Crypto Week," could propel Bitcoin to break previous records. Markus Thielen, head of research at 10x Research, points out that post-July Fourth market trends have been bullish, indicating that despite tariff-related risks, the digital currency market remains on a positive trajectory.

Moreover, Bitcoin's resilience is highlighted by recent significant movements within its network, where around 81,000 BTC worth $8.8 billion, mostly consisting of older coins, were transacted. While such movements often suggest profit-taking, the wider demand and supply metrics indicate sustained bullish tendencies. The "Apparent Demand" metric, measuring Bitcoin’s production against dormant supply, remains positive, further affirming the strong potential for continued upward movement.