The M2 money supply, currently around $97 trillion, serves as a crucial indicator of global liquidity. This metric includes cash, deposits, and near-money, revealing the potential for spending and investment in the financial system. Central banks play a vital role in influencing this liquidity through monetary policies such as interest rate cuts and quantitative easing. As liquidity expands, it encourages investment in risk assets like Bitcoin, which historically performs well during these periods. Understanding M2 helps investors anticipate market trends and navigate their strategies effectively.
In the intricate dance of global finance, few metrics are as telling as the M2 money supply-a measure of global liquidity. Currently sitting at a staggering $97 trillion and climbing.
For strategic investors, tracking global liquidity is akin to weather forecasting for the financial markets. Historically, Bitcoin bull markets have coincided with periods of rapid global liquidity expansion.
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