The global M2 money supply has reached an all-time high, sparking debate about its potential impact on Bitcoin (BTC). CoinDesk reports that the M2 money supply hit $21.94 trillion in May, exceeding the previous peak in March 2022. Typically, a growing money supply fuels economic expansion and boosts risk asset demand, including cryptocurrencies. However, if money supply growth outpaces economic output, inflation becomes a concern, potentially pushing the Federal Reserve to raise interest rates. Higher interest rates can decrease the attractiveness of risk assets like Bitcoin. This creates uncertainty for BTC. On one hand, increased liquidity could drive demand. On the other hand, inflationary pressures and subsequent rate hikes could dampen enthusiasm. The ultimate direction of Bitcoin's price remains uncertain, heavily influenced by macroeconomic factors and investor sentiment. ```

#BTC