Federal Reserve data showed that the U.S. M2 money supply reached a record $23.34 trillion in August, while Bitcoin fell this week. M2 grew 5.7% year over year in August 2025, its fastest pace since May 2022, according to market newsletter The Kobeissi Letter. Bitcoin supporters believe the cryptocurrency’s fixed supply can hedge against monetary expansion. Crypto asset manager 21Shares partly attributed November’s recovery to renewed inflows into spot Bitcoin exchange-traded funds. The divergence between the two has put markets to the test: is money supply growth still driving Bitcoin, or have ETF flows and bond yields become more important?