Gold has reached a critical juncture when compared to the US money supply (M2SL), testing levels last reached in 2011 and not surpassed since the 1970s, when prices more than tripled in several years to a then-record $700 an ounce.
In contrast, Bitcoin BTC$87,315.12Dubbed digital gold by some supporters, the price has fallen back towards support levels, again hitting lows last seen during April's “tariff tantrum.”
In 2011, the price of gold was $1,800 per ounce. Now it costs about $4,500. When plotted against the money supply, which represents the total inventory of dollars in circulation in the U.S. economy, including cash, bank deposits, and liquidity savings, prices have reached levels that have historically served as major resistance zones.
To get there, precious metals have soared 70% this year. This is in sharp contrast to Bitcoin, which is down about 10%. Still, Bitcoin continues to set new highs relative to the US money supply cycle after cycle, with the current support level also marking the previous cycle high in March 2024.
BTCUSD/M2 Money Supply (TradingView)
