- The ratio of global M2 money supply to Bitcoin in circulation has reached a record level.
- Only 21 million BTC exist, boosting scarcity appeal.
- The psychological framing of Bitcoin reaching $500,000—or even $1 million—is now gaining traction in both retail and institutional circles.
As the world’s money supply expands at an unprecedented pace, a growing number of market participants believe Bitcoin could eventually hit $1 million per coin.
The belief isn’t based on speculation alone—it stems from hard numbers.
Central banks are printing more money, governments are spending at record levels, and the global M2 money supply is expected to double from $100 trillion to $200 trillion by 2035.
With Bitcoin’s supply capped at 21 million, this massive influx of liquidity could create a potent supply-demand imbalance.
Money supply surge boosts BTC case
Bitcoin maximalists and macro-focused analysts now frequently cite monetary debasement as a key reason to hold the pioneer cryptocurrency.
Fred Krueger, a longtime Bitcoin advocate and investor, posted on X that “it will take 1 trillion USD moving into Bitcoin to get to 1 million.”
He argued that with the global money supply rising rapidly, “zero chance we don’t get there.”
The scale of monetary expansion is central to this view. Over the last 12 months, global liquidity has surged at one of the fastest rates on record.
Central banks across the US, UK, Europe, and Asia have continued accommodative policies, with large fiscal deficits becoming the norm.
These conditions, according to market observers, reduce the purchasing power of fiat currencies and push investors to explore alternatives.
River, a Bitcoin-focused financial services firm, highlighted that those who held BTC from July 2024 onwards have outperformed against money debasement tenfold.
This reinforces the narrative of Bitcoin as a hedge against currency dilution and economic instability.
M2 liquidity per BTC hits record
The ratio of global M2 money supply to Bitcoin in circulation has reached a record level.
According to decentralised finance investor Christiaan, there is currently about $5.7 million in global M2 liquidity per single Bitcoin.
This is the highest ratio in over a decade and is used to illustrate how limited Bitcoin’s supply is compared to the volume of fiat money in the global financial system.
This ratio, sometimes referred to as the liquidity-to-scarcity index, suggests that even modest capital inflows into Bitcoin—whether from institutional investors or sovereign wealth funds—could drive prices sharply higher.
Given the fixed 21 million coin limit, with many lost or illiquid, the supply-demand mechanics remain a central argument in favour of long-term price appreciation.
Retail push and historical trend
Retail investors are also being targeted with simplified messaging. Davinci Jeremie, a popular Bitcoin influencer, posted a video on social media urging viewers to invest just $1 into Bitcoin.
His message, “spend a dollar to change your future,” reflects a broader campaign among Bitcoin supporters to increase grassroots participation.
The psychological framing of Bitcoin reaching $500,000—or even $1 million—is now gaining traction in both retail and institutional circles.
As inflation fears persist, and as tech stocks become increasingly correlated with macro trends, many see Bitcoin as a standalone asset with unique supply properties.
While Bitcoin remains volatile in the short term, these macroeconomic dynamics are positioning it as a long-duration hedge.
The rising M2 supply and systemic debt loads across developed nations continue to lend weight to the idea that digital scarcity may offer long-term protection.
Historical data also supports the current optimism. Over the past decade, Bitcoin has consistently outpaced fiat currency performance during periods of rapid money printing and inflationary risk.