Bitcoin ($BTC) could attract more capital as global liquidity continues expanding, with the combined money supply of the Federal Reserve, European Central Bank, Bank of Japan and People’s Bank of China reaching a record $103.66 trillion. Market research platform Bull Theory said the four central banks added more than $1 trillion to combined M2 money supply in August and roughly $5.6 trillion so far in 2026. M2 broadly measures cash, checking deposits, savings and other highly liquid financial assets. Rising M2 generally means more liquidity is available across the financial system. Bull Theory argues that expanding money supply can push more capital into assets such as stocks, gold and Bitcoin. Bitcoin advocates including Anthony Pompliano and Arthur Hayes have long argued that monetary expansion is an important driver of Bitcoin’s long-term value. Historical data has often shown a positive relationship between Bitcoin and global liquidity, although that correlation weakened during the 2025-2026 bear market as Bitcoin fell despite continued growth in money supply. Bitcoin recently climbed to around $87,000, its highest level in nearly eight months, even as investors dealt with higher interest rates and rising Treasury yields. VanEck digital assets research chief Matthew Sigel said Bitcoin often reacts to liquidity growth with a lag. With M2 having accelerated for several quarters, the bullish argument is that the impact of expanding global liquidity may still be working its way into crypto markets.