Comment by mitthrowaway2

No, velocity of money is something else. As the wikipedia article says, it's the rate at which currency changes hands, ie, the rate at which transactions happen.

The phenomenon I described can happen with many or with few transactions. It only requires more buyers than sellers, and money creation through borrowing against the rising price of assets. Creation of money through borrowing is not an increase in the velocity of money, it's an increase in the supply of money.