- Global M2 money supply surges impact crypto markets.
- Experts highlight Ethereum as undervalued asset.
- Bitcoin and Ethereum show positive investor trends.
Global M2 money supply reached $55.5 trillion in early August 2025, sparking discussions amongst crypto leaders on its impact on Bitcoin and Ethereum.
Rapid money supply expansion favors risk assets, driving Bitcoin and Ethereum inflows, while experts debate market strategies amid fluctuating liquidity conditions.
The expansion of global M2 money supply has reached $55.5 trillion and is significantly affecting various markets. Historical trends link these expansions to rallies in risk assets, making cryptocurrencies particularly responsive to these changes.
Key figures such as Arthur Hayes and Eric Trump are directing strategic movements in response to the surge. Hayes sold $13 million of crypto assets, while Trump encouraged investors to buy during market dips.
The immediate effect of the M2 increase is evident in the valuation hikes of cryptocurrencies like Bitcoin and Ethereum. Analysts forecast potential returns of more than 65% for Bitcoin if liquidity conditions sustain.
Financial implications include increased investor activity and allocation shifts towards cryptocurrencies. Market experts suggest Ethereum’s valuation could reach $8,000–$16,000, contingent on M2 correlation and ETF flow continuity.
On-chain data shows a 77% increase in Ethereum valuations since late June. Assets like Bitcoin have become focus points for investors seeking to capitalize on rising liquidity.
Historically, M2 growth has correlated with asset price increases. Continued liquidity could further bolster cryptocurrency valuations, as evidenced by substantial investor interest and strategic positioning by key market players. “Global M2 money supply continues to grow at a healthy rate and thus supports risk financial markets such as stocks, corporate credit, commodities and cryptocurrencies,” said Edmund Shing, PhD, Global Chief Investment Officer, BNP Paribas. Detailed analyses highlight the adaptive responses of markets to evolving macroeconomic forces.
