U.S. M2 Money Supply Approaches New Highs as Financial Assets Reach Record Levels

In August, the M2 money supply rose nearly 1%, and aggressive monetary easing by both China and the U.S. has resulted in significant asset price increases, notably in cryptocurrencies.

The growth of the M2 money supply has shown a CAGR of 7% over the past five years, demonstrating its close relationship with the S&P 500 performance, thereby highlighting liquidity's crucial role in market dynamics.

On Sept. 24, financial assets, including the S&P 500 and gold, reached record highs due to central bank policies injecting liquidity, underscoring how monetary stimulus thrives amid economic uncertainties.

Combined balance sheets of the world's top 15 central banks surpassed $31 trillion, marking a rise that reflects substantial monetary stimulus efforts in response to ongoing economic challenges.

Read at Coindesk