GLOBAL LIQUIDITY IS INFLATED – AND THE MARKET IS CHOOSING GOLD, NOT BITCOIN
Global liquidity is at a record level. The global M1 money supply has exceeded 45 trillion USD, the highest in history. The main driver comes from China, where M1 has reached 16.5 trillion USD, accounting for about 37% of the global narrow money supply. The US is second with about 8 trillion USD, equivalent to 18%.
In other words, money is being pumped significantly, but the cash flow is not flowing into crypto as many expect.
The market reality reflects this clearly:
Gold has just set a historic peak around 4,440 USD/oz.
Bitcoin is down about 33% from the peak of 126,000 USD.
This shows that in the context of instability, large capital flows are prioritizing traditional safe-haven assets rather than high-risk assets. Increased liquidity does not immediately mean “risk-on.” Money may flow into the system, but trust will ultimately decide where it goes.
With crypto, especially Bitcoin, the question is not “is there money or not,” but when will the risk appetite return. Until that time, gold remains the chosen place for defense.
The market is not lacking in money.
It’s just that money hasn’t chosen Bitcoin. Soon enough, the cash flow will return $BTC
