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M2 money supply in the US has hit a new high of $21.9 trillion.

BTC continues to closely track the global M2 trend, which may indicate a further increase in the price of BTC in 2025.

The global money supply is also close to a record, gradually increasing under the influence of the liquidity decisions of the 4 major central banks.

M2 money supply in the U.S. reached a new record of $21.94 trillion, which has been growing rapidly since 2025 and is being closely watched because of its impact on the crypto market.

M2 money supply in the U.S. rose to a new high of $21.94 trillion in circulation. The M2 indicator is closely correlated with the dynamics of assets, including BTC, which may signal further growth of cryptocurrencies.

The index started to climb from a low of $20.7 trillion in 2023, coinciding with the recovery of cryptocurrencies after a multi-year bear market. The expansion of M2 coincides with another debt ceiling crisis. The Fed will likely need to continue easing monetary policy, which will further expand M2 and boost market confidence.

Over time, BTC has shown correlation with the global and U.S. M2 indicator. BTC lags the indicator by several months, reacting particularly keenly to the decline in M2 supply. A similar lag is seen in BTC expansion, which lags M2 growth by 3-6 months.

In the short term, the global M2 money supply predicted the April BTC rally as the price surged ahead and returned to levels above $100,000. In some cases, the BTC price rise lagged only 1-2 weeks after changes in the money supply.

BTC has occasionally outperformed during periods of low M2 growth, but these rallies are now seen as signs of a bubble. If the price of BTC is more closely tied to the amount of M2 supply, it could lead to a more sustainable trend when the market has not yet peaked in the form of a short-term bubble.

According to the four major central banks, the global M2 money supply has increased more smoothly over the past five years.

As of July 2025, the M2 money supply totaled $93.69 trillion, up 7.45% over the past year. The recent growth of BTC has far outpaced the growth of the money supply due to additional directed liquidity from stablecoins. However, the general feeling of rising inflation and a rebound in the stock market is also reflected in the growth of cryptocurrencies.

Although crypto activity is mainly centered in the US, China could also be a source of growing liquidity. China’s M2 money supply has been growing over the past decade, not slowing down even during the Covid-19 pandemic. As a result, China’s M2 money supply has surpassed $44 trillion, more than double the liquidity of the United States.

Global liquidity is being watched with even greater scrutiny due to BTC and its potential performance in the second half of 2025. BTC is now seen as a laggard, while M2 trends could push the price to new price highs, as high as $150000 per BTC.

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