The M2 money supply in the USA has reached a historic maximum - and this is one of the most bullish signals for the cryptocurrency market in recent years.
M2 in the USA has risen again to $22.3 trillion, and the growth rate is the highest since mid-2022.
This is the main sign that liquidity is returning to the system.
💡 Why is this critically important?
▪️ When M2 rises → risk assets rise
▪️ When M2 falls → crypto 'bleeds'
M2 is accelerating now.
🏦 What is driving a new wave of liquidity?
▪️ Further interest rate cuts from the Fed are expected
▪️ Cheap money = more capital in BTC and altcoins
▪️ UBS predicts that as early as the beginning of 2026, the Fed may start purchasing treasury securities at $40 billion a month
This is essentially an early stage of QE, even if it is not officially mentioned yet.
If interest rate cuts + government bond purchases coincide → the effect on liquidity will be explosive.
💵 What does this mean for the dollar?
Combination:
▪️ M2 growth
▪️ interest rate cuts
▪️ balance sheet expansion
➡️ will lead to dollar weakening in the coming quarters.
And a weak dollar historically means:
🚀 BTC growth
🚀 altcoin surge
🚀 powerful risk market rally
📈 Cycle history:
▪️ 2016–17 → liquidity growth → bull market
▪️ 2020–21 → liquidity growth → super bull market
▪️ 2026 → liquidity growth → the next mega cycle? 👀
🔥 Main conclusion:
Most people are looking at the price.
The smart ones look at liquidity.
And liquidity right now:
✅ expanding
✅ accelerating
✅ not fully priced in yet
This is one of the strongest macro signals for BTC and altcoins since the 2020–2021 cycle.
