Some movements occur when the money supply increases:
- The newly printed money goes into the hands of those closest to the printer;
- With more money in circulation and no proportional increase in the supply of goods and services, the currency loses value;
- Those holding money seek to preserve their purchasing power by allocating it into hard assets;
- The value of these assets tends to rise (supply and demand).
One of the charts shows exactly the relationship between Bitcoin’s boom-and-bust cycles and the money supply.
Now, in October, Fed Chair Jerome Powell made statements suggesting that the end of QT (monetary tightening) may be near, which could pave the way for a new QE (monetary expansion).
In a scenario of potential monetary expansion, gold has reaffirmed itself as a store of value, reaching record highs in recent weeks.
Will Bitcoin follow the same path?
#BTac
#bitcoin
#nostr
