🚨 US M2 money supply just hit a new all-time high of $23.34 TRILLION, adding close to $1 trillion in 2026 alone.
The Fed's broadest commonly cited money measure, covering cash, checking and savings deposits, small time deposits and retail money market funds, has now set record highs for months running. Growth is running about 5% to 6% a year, the fastest pace in four years. M2 has climbed roughly $2.5 trillion from its October 2023 low, completing a full round trip after the only sustained contraction in the 67-year record.
The bull case for crypto is simple. Bitcoin's supply is capped at 21 million coins, so every new record in the money supply strengthens the debasement narrative, and more dollars in the system can mean more liquidity chasing risk assets.
But the chart carries a warning. While M2 has gone almost vertical, Bitcoin has drifted lower and diverged from it since late last year. M2 growth leads asset prices only loosely and not on any fixed schedule, and a nominal measure sits at record highs most of the time. Critics also argue the surge reflects Fed policy that could fuel inflation, a view that remains contested.
Whether Bitcoin closes the gap or the gap stays open is the trade everyone is watching.
Not financial advice.
#Bitcoin #M2 #Liquidity #Crypto #Macro $BTC $SOL $ETH
The Fed's broadest commonly cited money measure, covering cash, checking and savings deposits, small time deposits and retail money market funds, has now set record highs for months running. Growth is running about 5% to 6% a year, the fastest pace in four years. M2 has climbed roughly $2.5 trillion from its October 2023 low, completing a full round trip after the only sustained contraction in the 67-year record.
The bull case for crypto is simple. Bitcoin's supply is capped at 21 million coins, so every new record in the money supply strengthens the debasement narrative, and more dollars in the system can mean more liquidity chasing risk assets.
But the chart carries a warning. While M2 has gone almost vertical, Bitcoin has drifted lower and diverged from it since late last year. M2 growth leads asset prices only loosely and not on any fixed schedule, and a nominal measure sits at record highs most of the time. Critics also argue the surge reflects Fed policy that could fuel inflation, a view that remains contested.
Whether Bitcoin closes the gap or the gap stays open is the trade everyone is watching.
Not financial advice.
#Bitcoin #M2 #Liquidity #Crypto #Macro $BTC $SOL $ETH
