According to @rovercrc, U.S. money supply is rising and Bitcoin could be the next beneficiary. According to Federal Reserve Economic Data FRED, the M2 series M2SL and its 3‑month annualized trend are the primary confirmations traders should check before positioning. According to Fidelity Digital Assets research, Bitcoin tends to perform better when liquidity expands and real yields fall, so traders can monitor M2 momentum alongside 10‑year TIPS real yields and rate‑cut odds from CME FedWatch to time entries. According to Glassnode analytics, changes in exchange flows and stablecoin supply growth can validate whether macro liquidity is actually rotating into crypto risk assets like BTC.

According to @milesdeutscher, the BTC price is closely tracking the direction of global M2 liquidity, with a BTC vs M2 chart playing out even if not point-for-point exact. Source: @milesdeutscher, X, Aug 12, 2025. He describes Bitcoin as a liquidity sponge, implying that expansions in global liquidity tend to support BTC while liquidity tightening creates headwinds. Source: @milesdeutscher, X, Aug 12, 2025. For trading, this positions global M2 trend as a macro indicator to monitor for BTC directional bias and risk management, aligning BTC with the global liquidity cycle. Source: @milesdeutscher, X, Aug 12, 2025.