The amount of money circulating in the U.S. economy is surging. The M2 money supply – which includes cash, checking and savings accounts – has hit an all-time high of $21.94 trillion in July 2025. And this development could play a key role in shaping the crypto market, particularly for Bitcoin.
🔹 Is M2 fueling the next BTC rally?
After bottoming at $20.7 trillion in 2023, the M2 supply has been rising sharply. This trend coincides with renewed fears of a U.S. debt ceiling crisis, which may push the Federal Reserve to loosen monetary policy – injecting more liquidity into markets and boosting investor confidence.
🔹 Bitcoin historically follows M2 trends
While Bitcoin typically lags behind M2 trends by several months, the relationship is strong. In April 2025, BTC surged past the $100,000 mark just months after M2 started rising. With M2 now accelerating again, BTC might be preparing for another breakout in the coming weeks.
🌍 Global M2 Is Growing More Slowly – But Still Boosting Crypto
While the U.S. is leading in monetary expansion, global M2 growth is more moderate. The combined M2 from the four largest central banks rose 7.45% year-over-year to $93.69 trillion.
📉 Stablecoins and exchange flows support liquidity
Even though Bitcoin is outperforming global M2 growth, extra liquidity from stablecoins and steady demand from both retail and institutional players continue to support upward momentum. Growing inflation fears and bullish sentiment in stock markets also fuel crypto expansion.
China — The Silent Engine of Global Liquidity?
China remains a surprising force in global monetary trends. Its M2 supply now exceeds $44 trillion, more than double that of the U.S. Despite strict crypto regulations, this liquidity could still indirectly support the overall crypto asset valuations.
🚀 What's Next for BTC?
Analysts are closely watching M2 metrics as a signal for Bitcoin’s future moves. If liquidity from the U.S. and China continues expanding, Bitcoin could climb to new all-time highs — with some projecting a potential $150,000 BTC in the second half of 2025.
While corporate and ETF demand remains steady, global money supply growth may be the true driver of the next leg up.
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