- Bitcoin strengthens its inflation hedge role amid money supply surge.
- Institutional investors significantly increase Bitcoin holdings.
- Market looks to Bitcoin as a primary beneficiary.
Bitcoinโs price surged in mid-2025 due to an increase in global money supply, which reached $142 trillion. Harvard Managementโs $443 million Bitcoin investment highlights a strategic move by institutions seeking inflation hedges.
Investors are drawn to Bitcoin as governments expand liquidity, leading to renewed confidence among stakeholders.
The global money supply expanded to $142 trillion, with significant contributions from China and the US. Institutional investors like Harvard Management increased Bitcoin allocations, highlighting its role as a macro risk hedge and its strong response to inflation trends.
Harvard Management Companyโs allocation to spot Bitcoin ETFs reached $443 million, surpassing traditional stock holdings. Key opinion leaders noted Bitcoinโs future is linked to ongoing global liquidity trends, reinforcing the demand for Bitcoin during expansive monetary policies.
Bitcoin prices rebounded sharply in alignment with increased global liquidity, positioning it as a leading asset against inflationary pressures. Institutional flows into Bitcoin increased, while gold and other assets showed more moderate responsiveness to monetary expansions.
โThe chart shows that since early 2023, bitcoin has tended to track global M2 money supply with a consistent 12-week lag, implying that changes in liquidity conditions filter through to crypto markets with a three-month delay.โ โ Raoul Pal, Macro Investor
Bitcoinโs relevance is reaffirmed by key opinion leaders and market stakeholders as global economic trends favor its scarcity and hedge narrative. Institutional allocations signify a growing trust in Bitcoinโs long-term role amid continued fiscal and monetary expansions.
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