US M2 money supply approaches record highs, signaling a bullish trend in the cryptocurrency market

rekt_but_vibing · 2026-01-21T13:32:17+00:00

As of December 2025, the U.S. M2 money supply continues to rise, nearing historical highs. This liquidity increase significantly impacts risk assets, especially cryptocurrencies, as investors seek higher returns in a favorable macroeconomic environment.

rekt_but_vibing

2026-01-21 13:32:17

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As of December 2025, the US M2( broad money supply continues to show an upward trend. According to CoinDesk analysis, the dollar-denominated M2 money supply has reached approximately $21.5 trillion, nearing the all-time high of $22 trillion. This persistent increase in US M2 goes beyond simple monetary phenomena and is having a significant impact on the overall risk asset market.

Dollar Supply Reaches Record Levels

The recent growth in US M2 supply indicates how much liquidity is available across the economy. The figure of $21.5 trillion is among the largest in history. As this increased dollar liquidity flows somewhere, a considerable portion is heading into risk assets.

Liquidity Expansion Boosts Cryptocurrencies

The increase in US M2 money supply creates an attractive environment for the entire risk asset market, including cryptocurrencies. When abundant liquidity floods the market, investors seek higher returns by channeling funds into risk assets. The recent strength of Bitcoin and altcoins is largely driven by these macroeconomic monetary environment changes. If this trend in US M2 continues, the upward momentum in the cryptocurrency market is likely to persist.

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