#M2 What is M2? It is a measure of the money supply that includes cash, deposits, and liquid assets - in simpler terms, it is an indicator of how much money is in circulation.

Liquidity is the primary fuel for all financial markets, especially for BTC, which acts as a sponge for liquidity.

The mechanics are as follows:

Money first enters the system (through central bank policy, the banking multiplier, etc.), then passes through the banking infrastructure and, with a certain delay, reaches the markets.

This delay is approximately 80 days, which explains the time lag between M2 and BTC charts.

It is important not to get confused here.

You might hear: "But isn't the monetary policy in the US currently tight? How can BTC be rising then?"

The thing is, we are not talking about US M2, but about global M2 - that is, the overall level of liquidity in the global economy.

Even if the US tightens its monetary policy, other major economies - China, Japan, the EU - may be easing it.

As a result, the global money supply continues to grow.

And since BTC is a global asset, it responds to the overall global liquidity, not just the actions of the Fed.

Therefore, the M2 chart with a delay serves as a kind of "weather forecast" for BTC.