The money supply M2 in the US rose to $22.02 trillion (+4.5%) in June! A new record and the 20th month of consecutive growth.
What is the money supply M2?
M2 is one of the key indicators of the amount of money in the US economy. It includes cash, deposits in checking accounts, savings accounts, and other "quick" money that people and companies can easily spend. Essentially, M2 measures how many dollars are "circulating" in the system. The data is published by the Federal Reserve (Fed) and is updated monthly.
In June 2025, M2 reached $22.02 trillion - this is 4.5% more than a year ago, and a new historical high. The growth has been ongoing for 20 consecutive months, indicating that the Fed is printing or injecting more money into circulation.
Why is M2 important?
The money supply is like fuel for the economy. If there is little money, growth slows down; if there is a lot, inflation can accelerate.
M2 helps to understand:
🔴Liquidity level: More money = more investment and consumption;
🔴Inflation risks: When M2 grows faster than the economy, prices rise, and the purchasing power of the dollar falls;
🔴Fed policy: M2 growth often signals a loosening of monetary policy (lower rates, more stimulus).
Risky assets (stocks, crypto, real estate) love M2 growth because more money = more investment. But there are nuances:
BTC is "digital gold" with a fixed supply (21 million coins). When M2 increases, BTC often rises in price because it hedges against inflation. The historical correlation is positive: during periods of M2 expansion (like in 2020-2021), BTC skyrocketed. In 2025, with M2 growth of 4.5% (the highest in 3 years), Bitcoin also follows M2.
The more dollars are "printed", the more expensive Bitcoin can become. Inflation will not disappear on its own, and BTC halvings make it an even rarer and more valuable asset.
