In August 2025, the US M2 money supply reached a new historical high, which may impact the Bitcoin (BTC) market.
US M2 Money Supply at a New Historical Level
As of August 26, 2025, the US M2 money supply stands at $22.13 trillion, up from $22.02 trillion at the end of July. Experts note that this trend could precede future BTC rallies as mass liquidity increases in the US economy.
Impact of Global Money Supply on BTC
The global money supply has also experienced active growth in 2025, increasing by $7 trillion since the start of the year, totaling $112 trillion. The recent three-month growth of BTC has coincided with the active phase of global M2 growth, highlighting the historical dependence between liquidity and Bitcoin price increases.
BTC Correlation with Other Assets
The correlation of BTC with low interest rates and growing liquidity aligns it with other assets such as gold and the S&P500 index. Despite recent spikes, BTC hasn't significantly outperformed other asset classes. Currently priced at $109,175, it shows a gap with stock markets.
The M2 money supply remains an indicator for forecasting Bitcoin's price movements. Given the current high level of the US money supply, experts anticipate possible BTC price increases by the year's end.
