#CryptoComeback

Why do we say that?

Global M2 Growth

Global M2—the sum of M2 aggregates in the U.S., eurozone, China, and Japan—increased by 1.11% in March 2025, reaching approximately USD 93.046 trillion.

A weaker dollar amplified the dollar‐value of other economies’ currencies, boosting this growth.

💥- United States

U.S. M2 rose 0.42% in March to USD 21.7625 trillion, driven by gains in deposits and money‐market funds.

The Fed slowed its balance‐sheet reduction (quantitative tightening), retaining more liquidity in the financial system.

💥- Eurozone

M3 saw 3.6% year-on-year growth and a slight –0.03% monthly change, standing at €16.85 trillion.

M1 (currency in circulation plus sight deposits) was the main driver, up 3.8% year-on-year, though it showed little month-to-month momentum.
💥-China

M2 grew 8% year-on-year as of end-April, up from 7% previously.

New aggregate financing reached CNY 1.2 trillion for the month, and total social financing (TSF) hit CNY 424 trillion (up 8.7% year-on-year), supporting real-economy credit.

Key Drivers

Central banks (Fed, ECB, etc.) maintained accommodative policies amid geopolitical and recession risks.

Dollar weakness buoyed dollar‐denominated monetary aggregates.

Public debt issuance and fiscal stimulus injected additional liquidity into banks and capital markets.

Implications

Inflation: Rapid money‐supply growth could rekindle inflationary pressures if not matched by productive capacity.

Risk Assets: Higher liquidity typically lifts equities and corporate credit but raises the risk of sharp corrections.

Policy Outlook: Central banks must balance support for the recovery with financial‐stability concerns, monitoring liquidity aggregates on a monthly basis.

In sum, the recent increase in global liquidity reflects expansive monetary policies and favorable exchange‐rate effects, with significant implications for inflation, financial markets, and economic‐policy decisions.