M2 Money Supply reached a record of $21.94 billion at the end of May, exceeding 21.72 billion in March 2022.
This increase in fluidity Promote bullish expectations for unstable financial assets such as Bitcoin (BTC), cryptocurrency, and behavior. In particular, the prices of digital currencies, which have historically continued to grow in this economic indicator.
M2 Money Supply measures the liquidity of the economy, including cash, bank accounts and other low-liquid financial products. This indicator reflects the amounts available for expenses and investments.
When M2 rises, surplus of US dollars It tends to increase demand for Bitcoin and increase market prices.
Therefore, recent increases in M2 will strengthen optimism in the digital asset market. Mattena, a 21-share cryptocurrency research strategist, said, “It suggests that as M2 money supply starts to increase again, some of this liquidity will flow to Bitcoin and other digital assets.”
In this context, as reported by Crypto, Bitcoin cited at $109,000, only $2,000 from the new historic largest, growing 76% last year. The main price catalyst is the company that invests in the company Bitcoin has strengthened direct purchaseswhen added to the M2 factor, the possibility of Bitcoin increases and breaks price records.
However, this scenario poses the Fear money challenge. Analyst Willie Wu said the BTC is the most sensitive asset to global liquidity, which equates the printing of money by central banks.
«It’s a bit beautiful. The more BTCs are printed by Central Banks, the more Fia Money dies. This contrast highlights how increased liquidity benefits Bitcoin and undermines the value of traditional currencies.
