- Historically, Bitcoin prices have surged following M2 expansions.
- Analysts expect similar outcomes based on past patterns in 2013, 2017, and 2021.
- Monitoring is underway for market adaptations despite muted immediate reactions from regulators.
Global M2 money supply has reached an all-time high of over $95 trillion, with US M2 at $22.02 trillion as of June 2025, according to Federal Reserve data.
This expansion is critical for cryptocurrencies, especially Bitcoin and Ethereum, as increased liquidity historically drives crypto market surges, impacting institutional investment decisions.
Global M2 money supply has risen above $95 trillion, setting a new all-time high. This increase is seen as a critical macroeconomic trigger, with the US M2 specifically reaching $22.02 trillion as of June 2025. Analysts like Raoul Pal emphasize the links between liquidity increases and bull cycles in major cryptocurrencies.
“Rising global liquidity drives up to 90% of Bitcoin’s price.” — Raoul Pal, Founder & CEO, Real Vision / Global Macro Investor source
A sharp rise in global liquidity generally benefits risk assets, including Bitcoin and Ethereum, as it might reduce funding stress while boosting speculative flows. Major exchanges and macro strategists are closely following these developments for potential market shifts. No direct responses from the crypto community or corporate leaders have been documented yet.
The current M2 Money Supply in the United States suggests potential upside for Bitcoin and Ethereum, contingent on historical correlations. Analysts remain vigilant, examining potential regulatory and governance changes that may accompany these macroeconomic shifts. The crypto market’s future movements depend on monitored liquidity and on-chain responses in the following weeks.
