MILESTONE | Global Money Supply Surges by ~7% YoY and Hits an All-Time High of $142 Trillion in 2025

Global broad money supply surged to an all-time high of $142 trillion in September 2025, driven largely by expansion in China, the U.S., and the EU. The unprecedented growth – up 6.7% year-on-year – has macro investors bracing for what could be the next major wave of global liquidity.

New York Fed President, John Williams, hinted last week that Quantitative Easing (QE) could make a comeback sooner than markets expect. Speaking at the European Bank 2025 Conference, Williams said the central bank is prepared to end Quantitative Tightening (QT) and may soon need to expand its balance sheet again to maintain “ample reserves.”

Once that threshold is reached, he noted, “it will then be time to begin the process of gradual purchases of assets,” suggesting that bond buying could resume to stabilize markets.

Analysts now believe the Fed could restart asset purchases as early as Q1 2026, an event that would mark a major inflection point for global liquidity.

As macro investor Raoul Pal put it:

“You just need to get through the Window of Pain – and The Liquidity Flood lies ahead.”

Money Supply “Through the Roof”

According to The Kobeissi Letter, global broad money supply has ballooned by 446% since 2000, rising by $116 trillion over the past two decades.

• China: $47 trillion
• European Union: $22.3 trillion
• United States: $22.2 trillion

That’s a 7% compounded annual growth rate, underscoring a world awash in liquidity – and investors searching for yield in a low-growth environment.

“Money supply is through the roof,” noted The Kobeissi Letter on X.

Where Does All That Cash Go?

When liquidity surges, capital doesn’t move evenly. It tends to flow into:

• Risk assets
• Hard assets, and
• Emerging financial narratives.

With bond yields tightening and traditional assets stagnating, Bitcoin and crypto may be next in line to absorb global inflows.

This is evident in the massive growth of ETFs in 2025. As per a recent report by BitKE, the 3 fastest ETFs to hit the $10 billion mark in over 3 decades are all spot crypto ETFs.

Despite recent volatility, institutional participation in crypto continues to deepen, positioning digital assets as a potential beneficiary of the next liquidity cycle.

While Crypto Twitter has been rattled by recent red numbers, veteran macro trader, Dan Tapiero, reminded investors that bull markets rarely end in panic:

“This bull phase in BTC and crypto ends when no one thinks it’s ending (ie not now)… Bad price action is supposed to shake weak hands. Mkts 101.”

Despite the sentiment slump, the broader macro setup of:

• Soaring money supply
• Central bank pivot signals, and
• Liquidity pressures

paints a bullish backdrop for digital assets.

As the NY Fed signals readiness for QE and global liquidity continues to expand, macro conditions appear to be aligning for another speculative rally.

Weak hands may be exiting, but history shows bull markets end in euphoria, not despair. With $142 trillion in global money supply searching for returns, crypto could once again become the destination for excess liquidity – igniting the next big leg up in digital assets.

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