The global M2 money supply has reached a new record high, approaching $130 trillion, signaling a favorable macroeconomic environment for risk assets, despite the cryptocurrency market ending 2025 with a downward trend.
š¹ The global M2 money supply has reached a record high, primarily driven by China accounting for approximately 37% or $47.7 trillion. This expansion contrast with the slowdown in economies such as Japan and South Korea.
šø The Federal Reserve has implemented three consecutive interest rate cut, and the government is implementing the Treasury Department $40 billion plan to inject money into the banking system, further easing funding condition.
š¹ Despite these supportive macroeconomic factor, the total cryptocurrency market capitalization fell 21% in Q4 2025, indicating investor caution.
Given the historical correlation between global M2 growth and risk appetite, will this record liquidity ultimately fuel a strong cryptocurrency recovery in 2026?
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