By Nermeen Nabil Khear 
This growth isn’t just a one-off; it’s the 11th consecutive month of money supply expansion. The total amount of U.S. dollars in circulation has now hit $21.6 trillion.
That’s just $16 billion shy of the all-time high set in April 2022. But it’s not just the U.S. that’s ramping up the money supply.
Rising Money Supply Boosts Crypto’s Appeal as an Inflation Hedge
Globally, the total money supply has increased by about $2.0 trillion over the past two months. It reached its highest point since September 2024. So, what’s the big deal? Well, when the money supply grows, it often raises concerns about inflation. More money in the system means more cash chasing the same goods, driving prices up. But for the crypto industry, this trend could be a blessing in disguise.
US money supply growth is accelerating:
M2 money supply rose +3.9% year-over-year in January, the fastest pace in 30 months.
This is the 11th straight month of money supply expansion.
The amount of US Dollars in circulation has reached $21.6 trillion, just $16 billion below an… pic.twitter.com/pqto2iiBIs
— The Kobeissi Letter (@KobeissiLetter) March 15, 2025
As fiat currencies flood the market, many investors are looking for alternative stores of value. This is where cryptocurrencies like Bitcoin and Ethereum come in. Digital assets are often seen as hedges against inflation. Unlike traditional currencies, they have a fixed supply or use decentralized networks to control their issuance. With the dollar losing some of its purchasing power, investors may turn to cryptocurrencies as a way to protect their wealth. This is where the potential for growth in the crypto sector lies.
Bitcoin’s Growing Role as an Inflation Hedge
Bitcoin, in particular, is often referred to as “digital gold”. So, its role as a store of value becomes even more relevant as concerns about inflation grow. With money supply expanding both in the U.S. and globally, demand for decentralized and inflation-resistant assets could continue to rise.
You don’t need Josh to tell you that we‘re likely rallying back to 100k USD. pic.twitter.com/JEujY6fMqq
— André Dragosch, PhD | Bitcoin & Macro
(@Andre_Dragosch) March 15, 2025
As the money supply continues to grow, we could see more interest in alternative assets, particularly cryptocurrencies. This presents a golden opportunity for those involved in the digital space. Some might argue that inflation is just around the corner. The crypto market offers a solid hedge against financial risks.
Disclaimer
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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