- US, Japan, and China see M2 supply at record highs
- EU’s M2 dips slightly but stays near ATH
- Liquidity growth may boost crypto prices
M2 money supply is surging across major economies, reaching all-time highs in the United States, Japan, and China. These increases reflect growing liquidity—an important factor that often drives asset price appreciation, including cryptocurrencies.
In the U.S., continued stimulus and monetary support have pushed M2 levels higher. Japan’s loose monetary policy and China’s targeted economic measures have added to the trend. This synchronized rise in money supply highlights a global push for liquidity, which often precedes bull runs in risk assets.
EU Holds Strong Despite Minor Dip
The European Union’s M2 supply has dipped slightly but still hovers near its highest levels. This indicates that overall liquidity remains strong in the region, maintaining favorable conditions for asset growth. While the EU may be more conservative in its monetary policy, it still contributes to the global liquidity wave.
Crypto Could Be the Biggest Beneficiary
Historically, increased money supply tends to find its way into financial markets—including the crypto space. As traditional assets become more saturated, investors often seek higher returns in alternative markets. Cryptocurrencies, with their limited supply and increasing adoption, could benefit significantly from this surge in liquidity.
Analysts see these M2 supply levels as a signal: current dips in the crypto market may be buying opportunities. If liquidity continues to expand, asset prices—including Bitcoin and altcoins—could follow upward.
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