Global money supply ‘through the roof’, hitting $142 trillion in September
All eyes in world finance are glued to liquidity. As the world broad money supply reaches a document $142 trillion, this financial firehose has macro buyers sitting up in their seats. Surging 6.7% year-on-year as of September, China, the EU, and the U.S. are driving this unprecedented growth, and Bitcoin and the broader crypto market could also be subsequent in line.
The countdown to QE: NY Fed units the stage
New York Fed President John Williams signaled on Friday that the period of Quantitative Easing (QE) may return prior to markets had been ready for. With persistent liquidity pressures and money market indicators flashing amber, Williams confirmed the central financial institution is poised to finish Quantitative Tightening (QT) and should have to increase its steadiness sheet once more.
Once the steadiness sheet has reached ample reserves, he instructed attendees at the European Bank Conference, “it’ll then be time to start the strategy of gradual purchases of property,” hinting that bond purchases may resume to help market stability.
Many analysts now anticipate the Fed may restart asset acquisitions as quickly as Q1 2026, which might be a watershed occasion for world liquidity. As macro investor Raoul Pal urged his followers:
“You simply have to get by way of the Window of Pain and The Liquidity Flood lies forward.”
Massive money supply: Where does the money go?
The ripples from the money press are world. The Kobeissi Letter broke down the numbers: since 2000, world broad money supply has grown by 446%, up $116 trillion from the flip of the millennium.
China now leads the pack with $47 trillion, adopted by the EU and U.S. at $22.3 trillion and $22.2 trillion, respectively. In different phrases?
“Money supply is thru the roof.”
That’s a compounded annual progress price of seven.0%, and a flood of potential capital searching yield and shelter from forex debasement.
When liquidity surges like this, it doesn’t slosh evenly; danger property, laborious property, and new money narratives turn out to be magnets for world flows. Bitcoin, notoriously risky however more and more institutionalized, seems higher positioned than ever to soak up the subsequent reallocation wave, particularly as bond yields compress and conventional property stagnate.
Bad worth motion… Or unhealthy assumptions?
Crypto Twitter, for all its noise, has spent the week tearing itself aside over red numbers and portfolio trauma. Dan Tapiero, founding father of 10T Holdings and a longstanding macro dealer, reminded us that bull markets hardly ever finish when panic is in every single place.
“This bull part in BTC and crypto ends when nobody thinks it’s ending (ie not now)… Bad worth motion is meant to shake weak fingers. Mkts 101.”
He’s not alone in this attitude. Even with irritating tape and sentiment-charged exits, the structural story of money supply by way of the roof, and central banks flashing pivot, seems like the good setup for an additional speculative surge.
In reality, the most harmful time for brand new capital chasing yield is commonly when the crowd is satisfied the run is already over.
With the NY Fed able to roll out QE as soon as extra and world liquidity displaying no signal of slowing, the circumstances are ripening for an additional rally in Bitcoin and crypto.
Weak fingers could wobble, however as seasoned macro voices word, actual bull phases finish in euphoria, not despair. Money pouring into the system should discover a residence, and the sequence of the world money supply flows could quickly ignite the subsequent huge leg up in digital property.
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