Awareness

[WillyAp]

Are people aware that there is a correlation between money in circulation and the price Bitcoin fetches on the free market?
Some people might even wake up as live without bitcoin is possible but life without FIAT is much more complicated.

[freedomgo]

For now, there’s always going to be a correlation between Bitcoin and fiat. That’s because Bitcoin isn’t a legal currency yet, so people still need fiat to buy it, and they sell it back to fiat when they want profit.

More people buying Bitcoin means more fiat being thrown into the market. That’s why the two are still closely tied together.

And honestly, I think this setup will stick around for a while as no country has fully committed to making Bitcoin a legal currency just yet.

[kotajikikox]

Are people aware that there is a correlation between money in circulation and the price Bitcoin fetches on the free market?

I feel this is one of those things that are supposed to be common sense but people do not really realize it until they actually think about it. Like if centralized banks issue more money there will be more money for people to spend which means more possible money to be put in investments like crypto. And the opposite can be true as well.

Some people might even wake up as live without bitcoin is possible but life without FIAT is much more complicated.

I would not hope to wake up without bitcoin haha. That would be as devastating as if I lost my fiat. Though with how much crypto has been engraved into the economy, if bitcoin for some reason disappeared one day it will also have a massive effect on the economy.

[Raflesia]

Some people might even wake up as live without bitcoin is possible but life without FIAT is much more complicated.

Because we still have to realize that bitcoin is still one of the future assets that can indeed be used as an investment or indirectly it can be a hedge which indirectly can be secondary in terms of needs but for fiat until now we still can't or maybe can't let go of it from our lives because it will be considered primary considering that we won't be able to do much if we don't have fiat for now.

Being in bitcoin doesn't mean we put aside fiat but we are only trying to take advantage of this so that our lives are still fulfilled for now with fiat and our future is expected to be guaranteed with investment in bitcoin so there is no need to let go of one if we can still use both.
Even though there may be some people who will debate this but for me and the concept of life that I am doing now as long as it can help the process of life then everything can be used so that in the end holding bitcoin and fiat without letting go of one or without hating one is still a rational thing that can be done.

[JoyMarsha]

Some people might even wake up as live without bitcoin is possible but life without FIAT is much more complicated.

Some people will, and some people may not stand to the shock that their future investment is all gone in a twinkle of an eye without notice. I believe there will be questions and answers on why it was made possible for Bitcoin, which is decentralized, not to exist anymore. What leads to that, and how do we hold people responsible for that arrest? That will be a big discussion in the media houses and world news because of trillions of dollars pumped into Bitcoin investment. What is the fate of Bitcoin in society? Will it be trusted again if it returns back?

[BitHodlers]

Are people aware that there is a correlation between money in circulation and the price Bitcoin fetches on the free market?
Some people might even wake up as live without bitcoin is possible but life without FIAT is much more complicated.

Yes, but also no. Your chart shows a very short time period, to make it more proper it should show at least the last 10 years. Even factoring that it, the total amount of time is still pretty short to be certain of correlations.

I feel this is one of those things that are supposed to be common sense but people do not really realize it until they actually think about it. Like if centralized banks issue more money there will be more money for people to spend which means more possible money to be put in investments like crypto. And the opposite can be true as well.

Things are not that simple. If they were, why not just print 1 billion $ for everyone so they can all be rich. Right? Printing money devalues everything. What matters is where most of the money is going to and whether you hold that asset or if you hold the currency that is being printed.

[d5000]

I first suspected this to be a random correlation in the last few years, just like the correlation with the stock markets. But I zoomed out and the picture indeed looks quite convincing:


Source: https://bitcoincounterflow.com/charts/m2-global/

There are still some timeframes with no or a low correlation, like the first part of 2014, but just that year can be probably an endogenous Bitcoin effect as this was the moment when MtGox begun to collapse. Also the pump 2024/2025 was heavily related to Trump's victory in the US, due to very specific expectations.

The logic "more money in circulation -> more money to invest in Bitcoin" looks sound, but I wouldn't have expected such a strong correlation.

[Rustam Meraj]

Because we still have to realize that bitcoin is still one of the future assets that can indeed be used as an investment or indirectly it can be a hedge which indirectly can be secondary in terms of needs but for fiat until now we still can't or maybe can't let go of it from our lives because it will be considered primary considering that we won't be able to do much if we don't have fiat for now.

Being in bitcoin doesn't mean we put aside fiat but we are only trying to take advantage of this so that our lives are still fulfilled for now with fiat and our future is expected to be guaranteed with investment in bitcoin so there is no need to let go of one if we can still use both.
Even though there may be some people who will debate this but for me and the concept of life that I am doing now as long as it can help the process of life then everything can be used so that in the end holding bitcoin and fiat without letting go of one or without hating one is still a rational thing that can be done.

That is fair way of looking that how Bitcoin and regular money work together. And that is right that we still need regular money for everyday things.  We know that there is limited amount of Bitcoin and it is decentralised so many people think that it will grow with passage of time.
And Idea of using both types of money makes much sense for many people. We can use regular money for daily need and put some money into Bitcoin for future. This way we are not putting all our eggs in one basket. By the way people think differently about cryptocurrencies and they have different plans.

[OcTradism]

Are people aware that there is a correlation between money in circulation and the price Bitcoin fetches on the free market?
Some people might even wake up as live without bitcoin is possible but life without FIAT is much more complicated.

When governments print more money at global scale, the world is flooded with fresh money supply that will be used by citizens for investing into some assets that are possibly real estates, stocks, Bitcoin or cryptocurrencies. It's very natural way of money flow in societies at both national and global scale.

Although capital flow has impacts on many markets, it often has sort of considerable lag effects. It means if Global M2 starts its soar in May 2025, market will not skyrocket instantly but it will need several months or several years to happen.

This matches very well with Bitcoin new supply circulation with designed 4-year block reward halving so if you understand all these things, you will determinantly and patiently accumulate as more fractions of bitcoin as possible and hold it very tightly.

[reagansimms]

As awareness of Bitcoin increases as it grows, people will try to find alternative currencies to protect their wealth when inflation occurs. Choosing Bitcoin does not mean setting aside the function of Fiat, Inflation which tends to have a negative impact on the value of fiat makes investors look for alternatives such as Bitcoin. Both currencies have their respective roles, you must be wise in managing your finances to protect value. Bitcoin high volatility makes it very risky, but on the other hand offers great profit potential.

[WillyAp]

For now, there’s always going to be a correlation between Bitcoin and fiat. That’s because Bitcoin isn’t a legal currency yet, so people still need fiat to buy it, and they sell it back to fiat when they want profit.

As long as it is that volatile it wont make it as currency.
Stripe took Bitcoin and the fluctuations almost killed them.

BTC needs a few minutes, even hours to reach, It could drop 2 k in under 5 minutes.

[BALIK]

Though with how much crypto has been engraved into the economy, if bitcoin for some reason disappeared one day it will also have a massive effect on the economy.

According to IMF, the global GDP of the world economy is 115 trillion while the total crypto market capitalization is only 3 trillion and according to another survey, about 7% of the global population is involved in the crypto market. That means if bitcoin and crypto suddenly disappeared, it would impact the economy but not as big as you might think. Although bitcoin is becoming more and more popular, it is not as globally popular as we think, many people still do not need it and still have a stable life.

[Apocollapse]

Maybe yes maybe no, just like someone who speculate Bitcoin price through 365 days moving average.

The speculation is make sense though, I also think $150K might be the peak in this super cycle, not expecting too much like $200K or so on.

According to IMF, the global GDP of the world economy is 115 trillion while the total crypto market capitalization is only 3 trillion and according to another survey, about 7% of the global population is involved in the crypto market. That means if bitcoin and crypto suddenly disappeared, it would impact the economy but not as big as you might think. Although bitcoin is becoming more and more popular, it is not as globally popular as we think, many people still do not need it and still have a stable life.

Yep, we need to wait for Generation X and prior to die first, those generation are very sceptic with new thing. Once they die, they will inherit their money to Generation Y and later, they will some portion to invest in Bitcoin.

[mindrust]

Of course we are aware. Bitcoin still acts like a stock/asset at this point. Bitcoin might get even bigger than gold and it still wouldn’t change anything.

The reason is because, people borrow fiat, people don’t borrow btc. Fiat is every where. Infiltrated to every business, every accounting, every trade.

Bitcoin is nearly non-existent in these areas.

That’s why FIAT is still the king, no matter how fat it gets.

[mvdheuvel1983]

As awareness of Bitcoin increases as it grows, people will try to find alternative currencies to protect their wealth when inflation occurs. Choosing Bitcoin does not mean setting aside the function of Fiat, Inflation which tends to have a negative impact on the value of fiat makes investors look for alternatives such as Bitcoin. Both currencies have their respective roles, you must be wise in managing your finances to protect value. Bitcoin high volatility makes it very risky, but on the other hand offers great profit potential.

There has been a lot of global recognition for Bitcoin and the recent concluded US election which saw Donald Trump becoming the president of the United State of America has created a positive impact and a great awareness towards the growth of Bitcoin but that been said it doesn't stop the role of Fiat as a currency that has been in existence before Bitcoin but investors will always consider the value they get with their money during inflation that is why having other alternatives comes to play and Bitcoin is a better alternative to Fiat during inflation no matter the volatility nature.

[cabron]

Though with how much crypto has been engraved into the economy, if bitcoin for some reason disappeared one day it will also have a massive effect on the economy.

According to IMF, the global GDP of the world economy is 115 trillion while the total crypto market capitalization is only 3 trillion and according to another survey, about 7% of the global population is involved in the crypto market. That means if bitcoin and crypto suddenly disappeared, it would impact the economy but not as big as you might think. Although bitcoin is becoming more and more popular, it is not as globally popular as we think, many people still do not need it and still have a stable life.

That's the difference though. The market cap is just too small for the global GDP. Not even a as huge in the Forex market but I think we are about to get to be bigger  as they are. Just think about Bitcoin added to the S&P 500, which sooner most investors in stock market will also have BTC in their portfolio.

I still think there will be no decoupling to fiat but its going to get bigger still because of the stablecoin adoption.

[nemesis_incarnate]

Of course we are aware. Bitcoin still acts like a stock/asset at this point. Bitcoin might get even bigger than gold and it still wouldn’t change anything.

The reason is because, people borrow fiat, people don’t borrow btc. Fiat is every where. Infiltrated to every business, every accounting, every trade.

Bitcoin is nearly non-existent in these areas.

That’s why FIAT is still the king, no matter how fat it gets.

Fiat would always be there, and BTC would be always there as an alternative that shines brighter and brighter as time goes on.

Because fiat is tested by everybody, and many still fear BTC for what it may bring to them.

[Die_empty]

Are people aware that there is a correlation between money in circulation and the price Bitcoin fetches on the free market?

This might be the reason why a reduction of interest rates in some major economies usually leads to an increase in the price of Bitcoin. When interest rates are low, money goes into circulation since borrowing becomes cheaper.

There has been a lot of global recognition for Bitcoin and the recent concluded US election which saw Donald Trump becoming the president of the United State of America has created a positive impact and a great awareness towards the growth of Bitcoin but that been said it doesn't stop the role of Fiat as a currency that has been in existence before Bitcoin but investors will always consider the value they get with their money during inflation that is why having other alternatives comes to play and Bitcoin is a better alternative to Fiat during inflation no matter the volatility nature.

Trump also brought much instability to the market with his tariff policies. Using Bitcoin for his campaign increased awareness among nations states, but it's also had its negative effects.

[melinoe]

Trump also brought much instability to the market with his tariff policies. Using Bitcoin for his campaign increased awareness among nations states, but it's also had its negative effects.

Unfortunately, he is a roller coaster in a way, and a wild card too.

But fortunately, he is only a cog, he can affect the market, but never control it 

[qurbanshah02]

Are people aware that there is a correlation between money in circulation and the price Bitcoin fetches on the free market?
Some people might even wake up as live without bitcoin is possible but life without FIAT is much more complicated.

I don't think so because these two things are not free for each other because whoever has money will have Bitcoin and whoever has Bitcoin will also have money. Therefore, I don't see any special reason between them because if Bitcoin goes up and down then money also goes up and down due to their circulation.

Many people have become serious about it and that is why they are also paying attention to it. But in the coming time it seem difficult to live without Bitcoin, due to which we can also consider Bitcoin as a part of it and without FIAT everything is lack in life because it is effective in everything.