# Bitcoin Pulls Back Despite Record $125 Trillion Global Money Supply

- URL: https://stocks.freetheai.org/news/bitcoin-pulls-back-despite-record-125-trillion-global-money-supply-7af70e
- Published: 2026-10-18T11:27:57Z
- Category: crypto; sentiment: mixed; impact: medium
- Symbols: [BITSTAMP:BTCUSD](https://stocks.freetheai.org/symbols/BITSTAMP-BTCUSD)
- Written by our AI from expert market sources across the web for FreeTheAI Stocks, built by Vibhek Soni
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Bitcoin (BITSTAMP:BTCUSD) has retreated over the past month to around $81,310 despite global money supply climbing to an all-time high of approximately $125 trillion. While expanding liquidity is often viewed as a catalyst for cryptocurrency gains, historical data indicates that the direction and speed of money growth have a far stronger effect on price performance than the absolute level of liquidity.

Global M2 growth has decelerated from 8% to 7% since late August, with total money supply dropping nearly 1% from its early-September peak. A stronger U.S. dollar, boosted in part by the Federal Reserve raising interest rates to between 3.75% and 4.00%, has reduced the dollar-denominated value of foreign currencies. A key momentum indicator that turned positive in mid-August now appears fragile and could shift negative by mid-November if current trends persist.

In the near term, investors are watching immediate support between $80,371 and $81,638, which held over the weekend, along with a deeper moving-average support near $76,800. On the upside, resistance sits at $82,400 and $84,134.

## Key points

- Global M2 money supply reached a record $125 trillion, up 7% year-over-year, but Bitcoin has dropped over the past month.
- Historical data shows accelerating money growth drives Bitcoin gains, while slowing growth leads to sluggish performance.
- A key liquidity momentum signal turned positive in August with Bitcoin near $63,000, but could flip negative by mid-November.
- Federal Reserve rate hikes to 3.75%-4.00% and a 3% dollar rally since September have reduced foreign M2 values in dollars.
- Bitcoin faces micro support between $80,371 and $81,638, with overhead resistance at $82,400 and $84,134.

## Questions and answers

### Why is Bitcoin falling if global money supply is at a record high?

Bitcoin price movements depend more on whether money supply growth is accelerating or slowing rather than the overall record level of global liquidity.

### When could the Bitcoin money growth signal turn negative?

If global money supply growth stays around 7%, the liquidity momentum signal is projected to turn negative around mid-November.

### What key support and resistance levels is Bitcoin watching?

Short-term support lies between $80,371 and $81,638, with deeper support at $76,800. Overhead resistance sits at $82,400 and $84,134.