Bitcoin Price Mirrors Money Supply Surge: Post-ETF Approval Rally Hits $104K

Since the U.S. Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs in January 2024, Bitcoin’s price behavior has entered a new phase. A striking chart comparison shows BTC closely tracking U.S. money supply growth, sparking fresh debates over its status as a macro hedge.

Bitcoin Price Moves With Money Supply

As illustrated in the shared chart, Bitcoin (BTC) is now showing a near-perfect correlation with the growth in U.S. M2 money supply — albeit with a 90-day lag. The chart uses a dual-line comparison: BTC price in orange and money supply index in blue. Both lines appear to converge at the same point by mid-2025, with BTC reaching $104,955 as of the most recent update.

This strong alignment underscores Bitcoin’s evolution beyond a speculative asset into a potential barometer of monetary inflation. Since the spot ETF approval on January 10, 2024, BTC has surged over 100%, further cementing its institutional relevance.

Post-ETF Rally Reinforces BTC’s Inflation Hedge Narrative

The approval of spot ETFs significantly boosted Bitcoin’s legitimacy and access among traditional investors. With broader institutional adoption, the cryptocurrency’s behavior has begun to reflect macroeconomic trends — particularly liquidity growth.

The 90-day offset highlighted in the chart suggests Bitcoin’s pricing may now be predictably linked to monetary expansion. If current patterns continue, the price of BTC could climb toward $140,000 in the coming quarters, following the same trajectory as the money supply.

Conclusion

Bitcoin’s correlation with the U.S. money supply since ETF approval is more than a coincidence — it may signal a structural shift in how BTC responds to macroeconomic forces. As Bitcoin (BTC) holds at $104,955, investors and analysts are watching closely to see if this trend will continue, setting the stage for another bullish breakout.