Global M2 Money Supply Reaches All-Time High Amid Crypto Market Concerns

Crypto KOL Ted posted on X that the M2 money supply in the United States, Japan, the European Union, and China has reached an all-time high. Despite this significant increase in global liquidity, the cryptocurrency market is behaving as if major central banks are preparing to initiate quantitative tightening (QT). This observation highlights a disconnect between the rising money supply and the cautious sentiment within the crypto market. The M2 money supply is a key indicator of the amount of money circulating within an economy, including cash, checking deposits, and easily convertible near money. The current levels suggest substantial liquidity, yet the crypto market's reaction indicates apprehension about potential monetary policy shifts. Ted's commentary underscores the complexity of market dynamics and the influence of central bank policies on cryptocurrency valuations.