Global Money Supply Surges 9% Bitcoin Poised for Rally

The Global Money Supply has recently reached a rare yearly growth rate of 9%. This indicator, which measures the total amount of fiat currency issued by major economies, has historically preceded significant bull rallies for Bitcoin. According to Capriole Investments founder Charles Edwards, past surges in this metric have led to substantial gains for the cryptocurrency. For instance, the August 2017 signal resulted in a 663% surge, the November 2017 signal in a 136% increase, and the June 2020 signal in a 580% rally. These historical data points suggest an average gain of 460% following such signals.

Edwards noted that central banks are currently flooding the market with fiat money, which is driving up the Global Money Supply. This trend, while extreme and rare, has historically been bullish for Bitcoin. The current 9% growth rate in the Global Money Supply over the past year aligns with previous periods that saw significant price increases for Bitcoin. As the Global Money Supply continues to rise, it remains to be seen whether Bitcoin will experience a similar positive effect in the coming year.

In addition to the Global Money Supply trend, the Bitcoin network recently witnessed its largest ever movement of coins older than ten years. According to CryptoQuant Head of Research Julio Moreno, around 81,000 BTC, worth approximately $8.8 billion, were moved in this latest spike of transactions involving ancient coins. Generally, old coins move when they are being sold, suggesting that these transfers could correspond to profit-taking. Despite this movement, the Apparent Demand indicator for Bitcoin has remained positive. This metric, which compares Bitcoin's production against its inventory, indicates that demand for the cryptocurrency remains strong even after the significant movement of old coins.

At the time of writing, Bitcoin is trading around $108,400, up 0.7% over the last week. The price of the coin appears to have been consolidating, reflecting a period of stability amidst the broader market trends. The current market conditions, coupled with the historical data on the Global Money Supply, suggest that Bitcoin may be poised for another significant rally in the near future. However, it is important to note that past performance is not indicative of future results, and investors should exercise caution when making investment decisions based on historical trends.