Gate News Report, March 20 — CF Benchmarks’ latest report shows that Bitcoin prices are still significantly lagging behind the global money supply growth trend. Since mid-2025, the global M2 money supply has increased by about 12%, while Bitcoin prices have fallen approximately 35% during the same period. The index provider noted that Bitcoin is currently trading at around $70,000, whereas the model-based “fair value” is close to $136,000, indicating a historic gap between Bitcoin and liquidity expansion.
Research Director Gabe Selby stated that long-term data suggests that the gap between Bitcoin prices and M2 money supply is usually temporary, but U.S. monetary policy remains a key influencing factor. The Federal Reserve has reduced its balance sheet from its peak to about $6.7 trillion and maintained a high-interest-rate environment, tightening financial conditions and limiting capital inflows into high-risk assets, including Bitcoin.
Rising energy prices have also increased household financial pressure. Since late February, U.S. gasoline prices have risen by about 81 cents, potentially increasing household expenditures by approximately $740 for the year, which partially offsets the disposable income gains from tax refunds. The market is also paying attention to potential supply disruptions in the Strait of Hormuz and the inflation risks they could trigger. Recently, oil prices briefly surged past $100 per barrel before falling back to around $92, still exerting pressure on risk assets.
CF Benchmarks pointed out that in past cycles, Bitcoin typically catches up with liquidity trends gradually after the Federal Reserve cuts rates or slows down its balance sheet reduction. Selby emphasized that if demand driven by U.S.-listed spot Bitcoin ETFs and corporate bonds rebounds, it would provide structural support for Bitcoin prices. Such sustained buying activity was absent in previous cycles.
Market analysis suggests that Bitcoin’s short-term trend remains influenced by high interest rates, rising energy prices, and geopolitical tensions, but there is potential for a price rebound in the medium to long term if the financial environment improves.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Benchmark Initiates Coverage of DDC Enterprise With Buy Rating, Targets 5,000 BTC by Year-End 2026
Gate News message, April 27 — Benchmark initiated coverage of DDC Enterprise (NASDAQ: DDC) on Monday, assigning a Buy rating and $3 share price target. The analyst noted a "clear runway" for the Asian food platform company to more than double its bitcoin holdings in 2026.
As of April 21, DDC
GateNews36m ago
E-Cash.org may be an early version published by Satoshi Nakamoto before “Bitcoin”
Bitcoin historical research shows that e-cash.org was registered 29 days earlier than bitcoin.org in July 2008, aligning closely with the development footprint during the drafting period of Satoshi Nakamoto’s white paper. This suggests that e-cash may have been the precursor name of Bitcoin. e-cash.org has always used private registration and, to date, has not published any content; the current holder is still unknown. The research believes that the naming change from e-cash to Bitcoin is an important clue in early cryptographic currency research, serving as indirect evidence. This conclusion first appeared in chain news from ABMedia.
ChainNewsAbmedia1h ago
MARA Foundation Launches to Strengthen Bitcoin Network Resilience
MARA CEO Peter Thiel announced the formation of the non-profit MARA Foundation on Monday, representing the firm's "strategic commitment to supporting the health of the Bitcoin network," according to the announcement. The organization is committed to the long-term health, resilience, and adoption of
CryptoFrontier2h ago
Bitcoin Remains Below $80K as CryptoQuant CEO Says Futures Drive Market, Spot Demand Lags
Gate News message, April 27 — Bitcoin has remained above $75,000 in recent days but failed to break through the $80,000 resistance level. CryptoQuant CEO Ki Young Ju argued that the current BTC market is primarily driven by futures trading rather than genuine spot demand.
According to Ju's
GateNews3h ago
Rep. Begich Plans to Reintroduce Bitcoin Strategic Reserve Bill as American Reserves Modernization Act
Gate News message, April 27 — Rep. Nick Begich announced plans to reintroduce legislation establishing a strategic bitcoin reserve in the United States within the coming weeks, rebranding his previous "BITCOIN Act" as the American Reserves Modernization Act (ARMA). Speaking at the Bitcoin2026
GateNews3h ago
XRP Futures and Options on CME Group Hit $13 Billion in Q1 2026, Ranking Third After Bitcoin and Ethereum
Gate News message, April 27 — CME Group's Q1 2026 crypto derivatives data shows XRP futures and options notional volume reached $13 billion, positioning it as the third most active contract after Bitcoin ($378 billion) and Ethereum ($155 billion).
Solana led the secondary tier with $21 billion in n
GateNews3h ago
