The recent rise of M2 money supply to a record of $55.48 trillion leads to a renewed focus on limited supply assets like Bitcoin and gold.
Surge in Global Liquidity
The global M2 money supply has reached an all-time high of $55.48 trillion. This unprecedented liquidity increase has drawn attention towards assets like gold, silver, and cryptocurrencies. The United States leads with $21 trillion, followed by the Eurozone and India. Experts warn that this monetary expansion may lead to asset inflation and shift liquidity towards alternative assets.
What Increased Global Liquidity Means for Bitcoin
Given the fixed supply of 21 million Bitcoin, experts suggest potential advantages during monetary expansion periods. Analyzing past inflations, caution is advised in expectations as regulatory news flow and ETF demands could also influence prices. However, there is growing investor interest in questions about the possibility of a new crypto bull market.
Prospects and Warnings
Despite positive outlooks, analysts urge caution. An increase in liquidity does not always guarantee price rises. It is essential to monitor the macroeconomic environment and geopolitical situation, as any trigger could lead to market volatility. In developing countries, there is a heightened pursuit for returns among savers fearing currency devaluation.
Thus, the rise of global money supply creates interest in limited supply assets, yet risks remain, and the situation requires careful analysis.
