Global Money Supply Hits Record High: Gold Rallies as Bitcoin Lags Behind

Global money supply reached a fresh all-time high in December 2025, creating a high-liquidity environment across financial markets. Gold has capitalized on this surge, rallying significantly as investors seek refuge in traditional hard assets to hedge against currency debasement. However, Bitcoin has failed to mirror this upward momentum despite the record liquidity that historically supports the cryptocurrency. This divergence marks a notable shift, as BTC/USD typically correlates with expansions in the M2 money supply. Market analysts suggest that the current decoupling may indicate a change in risk appetite or a preference for tangible assets over digital ones. The record liquidity remains a fundamental tailwind for inflation hedges, yet the immediate impact is clearly favoring XAU/USD over its digital counterpart.