This post was originally published on Coinspeaker
Key NotesThe US M2 money supply has reached an all-time high of $21.94 trillion, growing 4.5% year over year.BTC remains inside a descending channel since its $112K peak but shows resilience above key levels.The increase in M2 money supply indicates increased liquidity that could boost risk assets like Bitcoin.
The M2 money supply, a broad gauge of circulating currency including cash, checking deposits, and money market funds, just surpassed its previous peak from March 2022. Year-on-year growth is now at 4.5%, the highest in 3 years, signaling a resurgence in liquidity.
Historically, increases in M2 have preceded inflation. The 2020 rise in M2 contributed to higher inflation in 2021, leading to tighter monetary policy.
BREAKING: The US M2 money supply jumped +4.5% Y/Y in May, to a record $21.94 trillion.
This marks the 19th consecutive monthly increase.
It has now surpassed the previous all-time high of $21.86 trillion, posted in March 2022.
Furthermore, inflation-adjusted M2 money supply… pic.twitter.com/HsCLFZSgAT
— The Kobeissi Letter (@KobeissiLetter) July 1, 2025
Now, as M2 growth picks up again, investors are bracing for potential inflationary pressure, a situation that complicates the Federal Reserve’s ability to cut rates, especially with political pressure mounting to lower
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