Taiwan’s Liquidity Boom Fuels Bitcoin Rally Amid Strategic Reserve Talks

Taiwan’s liquidity surge from 1.93T to 2.26T in spring 2025 aligned with sharp Bitcoin gains driven by legislative support.

Ko Ju-Chun’s Bitcoin reserve proposal fueled public interest and reinforced BTC’s image as a strategic hedge amid rising tensions with China.

Bitcoin’s parallel growth with Taiwan’s M2 supply signals increasing institutional confidence and a shift toward national digital asset strategies.

Taiwan's liquidity expansion has shown a correlation with Bitcoin’s price surge during spring 2025. Legislator Ko Ju-Chun's advocacy for integrating Bitcoin into Taiwan’s strategic reserves has amplified market momentum. He emphasized Bitcoin’s value as a hedge against currency volatility and a potential shield from economic pressure. His May 9 speech stirred interest across financial circles, drawing attention to major platforms such as X.

Ko proposed investing 5% of Taiwan’s $50 billion reserve—around $2.5 billion—into Bitcoin. Additionally, he suggested allocating 0.1% of GDP, worth $600 million, for a national reserve. According to him, Bitcoin is a “strategic necessity” and a modern alternative to traditional assets like gold. He positioned Bitcoin as essential to preserving Taiwan’s monetary independence amid tensions with China.

Liquidity and Bitcoin Rise in Tandem

Taiwan’s M2 money supply movements from March to June underline this growing synergy. March data reflected stable Bitcoin pricing, with Taiwan liquidity flat at 1.96 trillion. There was minimal fluctuation in both metrics during early March. However, by April, Bitcoin began a consistent climb. At the same time, Taiwan's liquidity showed its first signs of upward momentum.

Source: Marty Party

Additionally, by mid-April, the correlation between both metrics became more noticeable. As Bitcoin prices increased, Taiwan’s liquidity edged past previous resistance. Consequently, this marked the start of a more aligned trend between digital and fiat monetary flows.

May and June Show Explosive Growth

May was a turning point. Bitcoin prices spiked, reaching new highs for the year. Taiwan’s liquidity simultaneously surged, rising from 1.96 trillion to over 2.0 trillion. By late May, indicators hit peak levels, showcasing the strongest correlation in the data set.

Moreover, June sustained this momentum. Taiwan’s liquidity reached a peak of 2.26 trillion, up from 1.93 trillion earlier in the year. Bitcoin maintained elevated positions in parallel with this liquidity surge. Hence, the rally seems supported by fundamental liquidity growth and rising institutional interest.

Ko’s proposals have sparked wider debate on Bitcoin’s role in sovereign reserves. Additionally, Taiwan’s financial trends now serve as a case study in digital-asset adoption. The country’s coordinated monetary and crypto trajectory highlights a new path for national-level digital asset integration.

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