Bitcoin’s Valuation Gap Widens Amid Global Liquidity Surge
- Bitcoin (BTC) is currently undervalued by approximately 66% relative to the global money supply, suggesting a fair value near $270,000.
- Gold has surpassed the global M2 money supply by nearly 75%, absorbing much of the liquidity from monetary expansion in 2025.
- Global M2 has reached a record $137 trillion following over 320 rate cuts globally in the past two years.
- The U.S. is issuing nearly $1.9 trillion in Treasurys annually, while Japan and Canada are implementing significant stimulus measures.
- Fidelity’s Jurrien Timmer noted that Bitcoin trails gold in momentum and risk-adjusted returns, indicating a potential mean-reversion opportunity.
Despite increasing global liquidity and significant fiscal initiatives, Bitcoin’s price remains disconnected from its historical valuation metrics, highlighting a unique investment opportunity as it continues to lag behind gold’s performance.
With Bitcoin trading below $100,000 and showing a potential upside of about +194% if it aligns with its long-term liquidity anchor, this situation emphasizes its current undervaluation compared to monetary expansion trends.(Source)
