URGENT: The money supply M2 in the US has just reached a new record & Bitcoin always follows it.
This chart is one of the biggest signals for cryptocurrencies right now.
The money supply M2 in the US has quietly returned to $22.3 trillion, and the growth rates are now the fastest since mid-2022.
This is the clearest sign that liquidity in the U.S. financial system is beginning to rise again.
And this is why it matters:
When M2 accelerates → risky assets rise.
When M2 slows down → cryptocurrency loses.
Right now, M2 is accelerating.
What drives this wave of liquidity?
The Fed is expected to continue lowering rates.
Low rates reduce borrowing costs and direct capital into higher assets like BTC and altcoins.
And this is not all.
UBS expects the Fed to start buying ~$40B/month of government bonds in early 2026.
This is primarily the early stage of QE.
Not publicly announced, but expectations are already forming among major institutions.
If the Fed starts buying government bonds amid falling rates, the impact on liquidity will be huge.
What does this mean for the dollar?
Combination: Higher M2, lower interest rates, balance sheet-style operations will weaken the dollar over the next few quarters.
A weak dollar has historically been one of the strongest factors:
⬩ Bitcoin breakouts
⬩ Altcoin expansions
⬩ Rally of risky assets
This is why the next liquidity cycle is so important.
Cryptocurrency reacts first when liquidity changes.
In every major cycle:
⬩ 2016-17 liquidity expansion → Bull market
⬩ 2020-21 liquidity expansion → Bull market
⬩ 2026 liquidity expansion → Bull market ???
Most people only look at the price.
Very few look at liquidity.
But M2 tells the real story:
⬩ Liquidity is expanding again.
⬩ The market has not priced this in.
⬩ Cryptocurrency benefits the most.
This is one of the strongest macroeconomic setups that Bitcoin and altcoins have had since the 2020-21 cycle.
