The Money Printer Is Surging and Bitcoin Won't Move — What's Really Going On? | Truth Block

**Nico Moran** (0:00)
For 10 years, one chart told you everything you needed to know about Bitcoin. When governments printed money, Bitcoin went up. Well, the printer is back on. US money supply is growing at its fastest pace in 5 years. And that chart says Bitcoin should be north of $150,000.
Instead, it's been stuck at $64k for 6 months. So is the Bitcoin thesis dead? Should you sell it all and buy the S&P 500 like this guy? Or did every printed dollar get captured by the most crowded trade in a generation, while Wall Street stamps AAA ratings on AI debt, the same stamp it put on mortgage bonds in 2007? Meanwhile, underneath it all, Bitcoin has coiled into the tightest trading range in its entire history, with leverage stacked on both sides of the price. Springswound this tight never stays still for long. A big move is coming, and the only question is which way it breaks. And the answer runs straight through the biggest monetary reorganization in 55 years, happening right now in plain sight. This is TruthBlock, I'm Hurley, let's mine truth.
The Bitcoin investment thesis has always been fairly simple on the surface. Bitcoin supply is fixed, fiat supply is not. So when the world's money supply expands, Bitcoin soaks it up and rises.
And for over a decade, that's exactly what happened. The relationship was actually so tight that analysts set their watches to it. Global M2 rises and Bitcoin follows about 10 weeks later. But around the middle of last year, the correlation started to break. Money supply started climbing to all-time highs, but Bitcoin rolled over. And the two lines have been pulling apart ever since. This is not just a bad month. It's a divergence that's been widening for over a year. Fidelity, one of the largest asset managers on earth, just published research asking the question straight out.
Is the macro case for Bitcoin unraveling? Their answer is that the thesis is still intact. But the plumbing broke. The money is being printed.
It just stopped reaching Bitcoin. So where did it all go?
Some went to the treasury, which ran a 432 billion deficit in July alone, up 48% in a year. Some went to gold, where central banks keep stacking aggressively. But the overwhelming share got captured by one trade. And we've covered it a lot on this show. The giant sucking sound of AI. Data centers, chips, power, every spare dollar on earth got in that line. And Bitcoin got sent to the back. And that vacuum is where this stops being a story about a broken chart and becomes a story about what happens when the thing doing the sucking starts to crack. Jeff Ross sat down with Opti right here on Simply Bitcoin this weekend and walked through the money underneath the AI boom. Stage by stage, where it came from and who's on the hook.

**SPEAKER_2** (2:37)
There's a lot of talk right now about this whole AI investment being this kind of circular investment. And we're starting to see weird financial behaviors similar to 2007, 2008, and similar to 1999, 2000, where everyone is talking about these unbelievable revenues that are coming and these orders, like everybody has backlogs of orders that will be paid at some point. And so that's very for equity investors, that's super encouraging. Like you want to see that. You want to see revenues just increasing and accelerating going off the charts, and they are, and backlogs just going off the charts, and they are. But at some point, if somebody along this circle can't pay, so like I'm talking about NVIDIA and all of the semiconductor companies, and then all of the hyperscalers that are involved, that they've already burned through all of their free cash flow. And then they've issued, that's step number one. And then step number two is they've issued tons of equity to raise more cash. They've already done all that. Then step three is they've gone to the bond markets and they're taking out hundreds of billions of dollars in loans to the public markets. Step four is now they're getting the sort of the dark markets, the KKRs, the Blackstones, these other institutions that are backstopping their loans now at this point.
And this is the kind of stuff you see. And now we're starting to see these loans get put into tranches, similar to what we saw back during 2007, 2008, with this whole mortgage, these mortgage-backed securities in these credit default swaps, these CDOs, these kind of things. This stuff is starting to happen now in the AI sector for the data AI infrastructure buildout. The first tranche just got evaluated and was given a AAA rating by, I think, Moody's, which is just exactly the same as what happened back in 2006, 2007, 2008, and we all know how that ended. So at some point, this whole circular financing rush for capital that's happening right now in the AI data center buildout chaos, at some point, it's going to run out. So we've seen these unbelievable equity gains so far.