🌍 Global M2 Money Supply Hits All-Time High!

 

🌍 Global M2 Money Supply Hits All-Time High: What It Means for Markets and Crypto

As of July 2025, the global M2 money supply has surged to a record-breaking $95.15 trillion, raising eyebrows across financial markets. But is this a sign of real economic expansion—or simply the result of currency fluctuations?

Let’s break it down.

💰 What Is M2 and Why Does It Matter?

M2 is a measure of a country’s money supply that includes cash, checking deposits, and easily convertible near money (like savings accounts). When aggregated globally, it gives us a rough picture of how much liquidity exists in the world economy.

More liquidity typically fuels asset growth, lowers borrowing costs, and boosts risk-on investing—including stocks, real estate, and especially crypto.

📊 The Latest Numbers

• Global M2 (USD terms): ~$95.15 trillion
  ⬆️ +3.87% over the last 3 months (above average)
• Global M2 (constant FX):
  ⬆️ +1.19% over 3 months (below average)
  → Much of the rise in USD terms is due to foreign currencies appreciating, not new money creation
• U.S. M2 (June 2025): ~$22.02 trillion
  ⬆️ +0.63% MoM and +4.53% YoY (normal range)
• Euro Zone, China, Japan:
  M2 growth is modest to below average, indicating limited monetary stimulus

🪙 What This Means for Crypto

Several analysts suggest this global liquidity boost—especially in USD terms—could support bullish trends for Bitcoin and Ethereum:

• Eric Trump and others have remarked that based on current liquidity, Ethereum should be above $8,000.
• Some forecasts now point to Bitcoin reaching $150K to $200K before the end of 2025.

The thinking is simple: more money sloshing around = more fuel for speculative assets like crypto.

⚠️ A Word of Caution

While global M2 has hit a record, real money growth (adjusted for FX) is still slow. Central banks are not flooding economies with liquidity like they did in 2020–2021. So we’re seeing a liquidity illusion in USD terms—not a global easing wave.

✅ Key Takeaways

• Global M2 is rising, but much of it is due to currency effects.
• U.S. M2 is growing at a healthy, average pace.
• Crypto markets may benefit, but the underlying monetary expansion is modest.
• Don’t get caught in the hype—look beyond the surface numbers.

🔮 What's Next?

Will this liquidity wave translate into real growth or is it just a short-term distortion? And will central banks remain cautious—or begin easing again?

📌 Let us know your thoughts in the comments!
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