Global Money Supply surged by 9%! Historical signals suggest Bitcoin will pump by 460%?

Global fiat "point shaving" is accelerating The founder of the cryptocurrency investment firm Capriole Investments, Charles Edwards, published a latest analysis on his social media platform X, focusing on the significant trend of Global Money Supply. This indicator measures the total fiat currency issued by major countries around the world (denominated in US dollars).

The chart shared by Edwards clearly shows that the annual growth rate of this indicator has been continuously rising recently, indicating that the fiat supply is rapidly expanding. "Central banks around the world are injecting a large amount of fiat currency into the market," Edwards pointed out. Currently, the annual growth rate has reached around 9%, indicating that the global money supply has surged by 9% over the past twelve months. He emphasized: "This is an extreme and rare level."

Historical Backtesting: 9% Growth = A Precursor to Bitcoin Surge? Notably, Edwards overlaid historical data of Bitcoin's daily prices on the same chart. A strong pattern emerges: whenever the year-on-year growth rate of global money supply approaches or reaches the current level of 9%, Bitcoin experiences a significant bull market in the following twelve months.

• Signal in August 2017: Subsequently, the price of Bitcoin surged 663%
• November 2017 Signal: Subsequently, the price of Bitcoin increased by 136%
• June 2020 Signal: Subsequently, the price of Bitcoin surged 580%

The historical average increase has reached an astonishing 460%! This indicates that the global central banks' shift to "money printing" mode often has a significant bullish effect on Bitcoin prices. Given that the global money supply is once again growing at a considerable pace, whether Bitcoin can replicate its historical brilliance in the coming year has become a focal point for cryptocurrency investors and a potential major Bitcoin investment opportunity.

On-chain Dynamics: Huge "Ancient" Bitcoin Movement Attracts Attention Meanwhile, CryptoQuant's research director Julio Moreno pointed out on X that the Bitcoin network has recently experienced the largest movement of "ancient" tokens in over ten years in history.

In this surge of transactions involving "ancient coins", a total of approximately 81,000 BTC (valued at up to $8.8 billion at current exchange rates) has been transferred. Typically, the movement of long-held tokens may indicate that holders are selling to cash out their profits.

Demand indicators remain strong, has the foundation of the bull market not changed? It is noteworthy that Edwards explained in another X post that despite such a massive token movement, the Apparent Demand indicator for Bitcoin remains positive (bullish). This indicator measures the actual market demand by comparing Bitcoin's new issuance (miner output) with inventory (supply that hasn't moved for over a year).

"Despite the movement of 80,000 BTC, the apparent demand for Bitcoin remains bullish," Edwards said. This is a positive signal for assessing Bitcoin price trends and evaluating market health.

Current Price of Bitcoin Gate market data shows that as of the time of writing, the spot price of Bitcoin is currently 108,138.7 USD, with a slight drop of 0.57% in the last 24 hours. Investors are closely watching whether the surge in global fiat supply will reignite the cryptocurrency market, especially the next bull market for Bitcoin.