Global money supply just hit a record $144 trillion, and it is raising new concerns.
Expanding liquidity typically supports financial markets. The post-pandemic market is a great example from recent history when much-needed financial stimulus helped it recover.
However, the speed of money creation is raising concerns.
Related: Crypto Reportedly Attracts Record Money in 2021
Global money reaches trillions
According to data highlighted by The Kobeissi Letter on Feb. 25, global broad money supply surged $13.6 trillion year-over-year in December 2025, a 10.4% increase and the third consecutive month of accelerating growth.
Since 2000, the global money supply has expanded by $118 trillion. Since the 2020 pandemic alone, it has jumped $44 trillion, which is a 44% surge.
But one thing the Kobeissi team points out,
"Global money creation has never moved this fast outside of a crisis."
Liquidity is fueling markets for now
When money supply rises, credit conditions loosen. Capital flows more easily. Investors take more risk. Historically, that kind of environment benefits equities, technology stocks , and cryptocurrencies.
From the perspective of 2020-2021, accelerating global money growth can be interpreted as supportive. Liquidity is the fuel of modern markets. When it expands, asset prices often follow.
But the speed and timing of this expansion complicate the story.
As The Kobeissi Letter pointed out, the fastest surge in recent years occurred in February 2021, when money supply growth reached 18.7% during pandemic emergency measures.
Today's money printing is happening without a comparable global emergency.
Money printing during a crisis is typically framed as stabilization. But money printing outside of crisis conditions hints at structural pressure. It can be due to debt burdens, persistent fiscal deficits, or financial system fragility.
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More importantly, the rapid expansion of fiat supply erodes purchasing power over time. When more currency units are created, each unit represents a smaller share of total monetary value.
In 2021, while markets recovered on one hand, U.S. inflation also hit 9.1% in June 2022, the highest since 1981 . Assets such as stocks, housing, and even crypto surged first before making sharp corrections.
Early 1920s Germany provided one of the most extreme examples of what happens when money supply expands uncontrollably. After World War I, the German government printed massive amounts of currency to meet its obligations. The money supply exploded in a short period, far outpacing economic output.
The result was hyperinflation. At its peak, prices doubled in a matter of days, and the German mark became nearly worthless. Savings were wiped out, wages lagged far behind rising costs, and everyday goods became unaffordable.
What this means for crypto
For crypto markets, the implications cut both ways.
On one hand, rising global liquidity has historically supported Bitcoin (BTC) and other digital assets. Bitcoin often behaves as a liquidity-sensitive asset, rallying when money supply accelerates and falling when liquidity tightens.
Thanks to increasing liquidity, risk appetite increased for many traditional investors. Bitcoin price went from $10,000 per BTC in September 2020 to over $64,000 in November 2021.
But by next year, it also went through massive corrections. From July 2022 to October 2023, it was range-bound between $20,000 and $30,000, occasionally slipping below the lower limit.
On the other hand, aggressive monetary expansion also strengthens Bitcoin's scarcity narrative.
Historically, gold has served as the primary scarce hard asset used to hedge against currency debasement. Today, many crypto proponents view Bitcoin as a modern alternative.
Unlike fiat currencies, Bitcoin's supply is permanently capped at 21 million coins. That structural scarcity strengthens its positioning as a potential hedge against long-term monetary expansion and currency debasement .
Related: Economist blames Trump's tariff policy for inflation, rejects Bitcoin as a hedge
This story was originally published by TheStreet on Feb 25, 2026, where it first appeared in the Economy section. Add TheStreet as a Preferred Source by clicking here.
