Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Gold and Bitcoin Near Historic Valuation Relative to US Money Supply

Gold and Bitcoin Near Historic Valuation Relative to US Money Supply

BeInCryptoBeInCrypto2025/10/24 04:59
By:Paul Kim

Gold and Bitcoin near record valuation versus US M2 money supply as Fidelity’s Jurrien Timmer warns their inflation-fueled rally may be ending.

The combined value of gold and Bitcoin is approaching a historic level relative to the US M2 money supply.

A top market analyst now suggests the upside potential for using these assets as hedges against dollar devaluation and inflation may be nearing its limit. Jurrien Timmer, Director of Global Macro at Fidelity, shared his analysis on X (formerly Twitter) on Friday.

The End of the Easy Run?

Because of their limited supply, gold and Bitcoin are widely regarded as premier inflation hedges. Data from CoinGecko shows both assets have rallied strongly this year—gold is up 54.83%, while Bitcoin has gained 12.98%.

However, Timmer argues that this rally may be approaching its ceiling. He draws a comparison between current market conditions and those seen during the high-inflation peak of 1980.

Gold and Bitcoin Near Historic Valuation Relative to US Money Supply image 0Monetary Inflation. Source: Jurrien Timmer’s X

Comparing Value Against US M2

Timmer’s analysis aggregates the inflation-adjusted market value of gold and Bitcoin, then compares the total to the US M2 money supply—a broad measure of money in circulation.

Historically, sharp expansions in M2 (monetary inflation) have coincided with significant rises in the value of hard assets like gold. According to Timmer, both gold and Bitcoin act as key forms of “hard money,” offering protection against currency debasement.

The Historical Ceiling

Timmer highlights two notable moments in the past century when inflation caused gold’s value to surge—1933 and 1980. During those peaks, gold’s total market value reached 123% and 140% of the US M2 money supply, respectively.

Today, the combined value of gold and Bitcoin is about $29 trillion, equivalent to 133% of the M2 money supply. That figure surpasses the 1933 peak and sits just below the 1980 high.

Timmer called this valuation a “critical point” to consider following gold’s recent aggressive rally.

“One reason to contemplate ringing the golden bell is that if gold is a play on US fiscal dominance, one could argue that the run is now complete,” he concluded.

This suggests that the massive rallies in gold and Bitcoin—largely driven by concerns over monetary expansion—may be running out of steam. While both assets remain structurally sound as long-term hedges, Timmer warns that the “easy returns” fueled by inflation fears may already have been realized.

0
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Assessing How Federal Reserve Policies Influence Emerging Blockchain Assets Such as Solana

- Fed's 2025 rate cuts and liquidity injections initially boosted Solana prices by 3.01% but triggered 6.1% drops during October 2025 liquidations. - Regulatory frameworks like EU MiCA and U.S. GENIUS Act drove 8% institutional ownership of Solana, attracting $101.7M in November 2025 inflows. - 35% of crypto volatility stems from Fed policy shifts, with high-rate environments eroding Solana's appeal as investors favor cash equivalents. - Solana's SIMD-0411 proposal aims to reduce token issuance by $2.9B by

Bitget-RWA2025/12/13 09:14
Assessing How Federal Reserve Policies Influence Emerging Blockchain Assets Such as Solana

Sustainable Transportation in Cities and the Adoption of Renewable Energy in Developing Economies

- South Africa and India are leading solar-powered transit growth, driven by decarbonization goals and energy security needs in emerging markets. - Solar bus markets project $17.79B value by 2033 (21.6% CAGR), supported by falling solar costs, EV affordability, and policy frameworks in Africa/Asia. - Behavioral economics shapes e-mobility adoption, with South Africa targeting 18,000 tonnes CO₂ reduction via 120 electric buses and India using social nudges to boost EV uptake. - Cross-regional collaboration

Bitget-RWA2025/12/13 08:50
Sustainable Transportation in Cities and the Adoption of Renewable Energy in Developing Economies

PENGU Price Forecast for 2025: Steering Through Regulatory Challenges and Growing Institutional Confidence

- Pudgy Penguins (PENGU) faces regulatory uncertainty from SEC delays and EU MiCA, causing 30% price drops due to compliance risks. - Institutional interest grows with $273K whale accumulation and rising OBV, contrasting retail fear (Fear & Greed Index at 28). - Ecosystem expansion via Pudgy World and penguSOL, plus Bitso partnership, aims to boost utility but depends on user adoption and regulation. - Expert forecasts diverge: $0.02782 (CoinCodex) vs. $0.068 (CoinDCX), with technical analysis highlighting

Bitget-RWA2025/12/13 07:14
PENGU Price Forecast for 2025: Steering Through Regulatory Challenges and Growing Institutional Confidence
© 2025 Bitget