What is M2 money supply 💰
The chart shows Bitcoin’s price alongside global M2 — a measure of how much money is in the system. M2 includes cash, bank deposits, and other easily accessible funds. When it rises, it means there’s more liquidity looking for a home.
It is used to gauge the money available for spending and investment, influencing economic activity and inflation. And the pattern is hard to ignore. When M2 rises, Bitcoin usually follows 📊
Why? Because M2 reflects how much liquidity is sloshing around the system. When central banks expand the money supply, those new dollars look for returns — and they often end up in scarce assets.
🤑 Bitcoin is exactly that. With a hard cap of 21 million, it’s the opposite of fiat. When money printers go brrrrr, Bitcoin becomes the safe heaven.
This happened in 2020–2021 during aggressive quantitative easing. M2 surged, and Bitcoin ripped higher. The chart shows that relationship clearly.
📈 And now? M2 is spiking again. History suggests Bitcoin is lagging a few months behind and might reach a new ATH this year.
#Educational post
