According to @AltcoinGordon, BTC could see parabolic upside when it "catches up" with M2 money supply, flagging a potential liquidity-driven move across crypto, source: @AltcoinGordon on X. M2 is a broad US money supply gauge used to track liquidity conditions that influence risk assets, source: Federal Reserve H.6 statistical release. During 2020–2021, US M2 expanded rapidly while BTC rose from roughly $6.5k in Mar 2020 to about $69k by Nov 2021, suggesting a supportive liquidity regime for crypto, source: Federal Reserve H.6 and CoinGecko historical data. In the same period, the Federal Reserve balance sheet expanded from about $4.2T (Mar 2020) to roughly $8.6T (late 2021), underscoring abundant USD liquidity, source: Federal Reserve H.4.1 statistical release. Crypto-native liquidity also surged as total stablecoin market cap grew from around $5B in early 2020 to over $150B by late 2021, reinforcing BTC’s bull phase, source: DeFiLlama stablecoin data. When real yields rose and liquidity tightened in 2022, BTC fell from ~$69k to near ~$16k by Nov 2022, illustrating sensitivity to liquidity withdrawal, source: U.S. Treasury TIPS real yields and CoinGecko historical data. Trading takeaway: monitor US M2 trend, Fed balance sheet net liquidity, and stablecoin net issuance as confirmation signals for any renewed BTC momentum, source: Federal Reserve H.6, Federal Reserve H.4.1, and DeFiLlama. Risk note: if M2 stagnates or contracts and real yields rise, historical patterns show weaker crypto risk appetite, source: Federal Reserve H.6 and U.S. Treasury TIPS real yields.

According to @bobbyong, BTC is a hedge against USD inflation and should remain up-only while the money printer runs, as stated in his X post on Sep 6, 2025. Source: Bobby Ong on X, Sep 6, 2025. Under this thesis, traders should monitor USD liquidity proxies such as US M2 money supply and the Federal Reserve balance sheet total assets to gauge directional bias for BTC. Sources: Federal Reserve Bank of St. Louis FRED M2SL; Board of Governors H.4.1 Statistical Release. CPI prints and FOMC policy decisions are near-term volatility catalysts for BTC because they inform inflation and liquidity paths that underpin this view. Sources: U.S. Bureau of Labor Statistics CPI; Federal Reserve FOMC statements.

According to @cas_abbe, M2 money supply in the US, China, EU, and Japan has reached new all-time highs, indicating broad liquidity expansion (source: @cas_abbe, Sep 6, 2025). According to @cas_abbe, BTC remains about 10% below its all-time high despite this liquidity backdrop (source: @cas_abbe, Sep 6, 2025). According to @cas_abbe, global rate cuts have started and the US is expected to begin cutting this month, a calendar catalyst traders may monitor for BTC volatility and breakout attempts (source: @cas_abbe, Sep 6, 2025).

According to @milesdeutscher, stablecoin supply is projected to reach $0.75T (2.6% of M2) in a bear case, $1.5T (5.2% of M2) in a base case, and $3.0T (10.4% of M2) in a bull case, emphasizing the scale versus M2 as a key context for market liquidity (source: @milesdeutscher, Aug 15, 2025). According to @milesdeutscher, these projections are "ridiculously bullish for crypto long-term," implying a constructive backdrop for market liquidity and participation if realized (source: @milesdeutscher, Aug 15, 2025). According to @milesdeutscher, the tweet frames the outlook without a stated timeline or methodology, positioning it as a directional thesis for traders tracking stablecoin supply growth as a market indicator (source: @milesdeutscher, Aug 15, 2025).

According to @rovercrc, the rapid expansion of the M2 money supply is set to inject significant liquidity into financial markets, which is considered bullish for Bitcoin (BTC) and the broader cryptocurrency market. Increased liquidity historically correlates with upward price movement in digital assets as investors seek alternative stores of value and risk-on opportunities (source: @rovercrc).

According to @rovercrc, Bitcoin (BTC) is positioned for a potential move toward an all-time high, supported by strong macroeconomic tailwinds. Key drivers include U.S. equity indexes reaching record highs, suggesting increased investor risk appetite that could benefit alternative assets like BTC. A significant factor is the U.S. M2 money supply, which hit a record $21.94 trillion at the end of May, indicating massive liquidity that could flow into financial markets. The analysis also cites historical data showing July is a seasonally strong month for Bitcoin, with average gains of around 7%. However, there is a counter-narrative, as sources like TIOmarkets suggest that rapid M2 growth could fuel inflation, potentially pressuring the Federal Reserve to delay interest rate cuts and creating a less favorable environment for risk assets. Current data shows BTC trading around $107,885, just below its recent 24-hour high of over $109,656.

According to analyst André Dragosch, traders should be cautious about relying on the inverse correlation between Bitcoin (BTC) price and USDT Dominance for market predictions. Dragosch presents an analysis suggesting this popular trading indicator might be a fallacy, similar to the often-cited but potentially spurious correlation between BTC and the US M2 Money Supply (source: @Andre_Dragosch). While charts show that a rising USDT Dominance has often preceded BTC price drops, Dragosch implies that drawing direct causal links is an oversimplification. He suggests that, like the M2 correlation, the relationship with USDT Dominance may be influenced by broader factors such as overall market liquidity and risk appetite, rather than being a straightforward predictive tool (source: @Andre_Dragosch). This serves as a warning to traders to avoid basing strategies solely on this single metric.

According to @MilkRoadDaily, Bitcoin (BTC) is positioned to potentially reach a new all-time high in July, driven by strong macroeconomic factors. The analysis points to U.S. equity indexes reaching record highs, which often leads to capital flowing into alternative assets like Bitcoin. The article highlights that the U.S. M2 money supply has hit a record $21.9 trillion, increasing overall market liquidity and the search for assets that can hedge against inflation. Furthermore, a post by Ray Dalio is cited, warning that rising U.S. government debt could lead to significant financial disruptions, potentially increasing the appeal of assets like BTC. The summary also notes a seasonal advantage, as July has historically been a positive month for Bitcoin, with average gains of around 7%.

According to @cas_abbe, the U.S. M2 money supply reached a record high of $21.94 trillion at the end of May, surpassing its previous peak from March 2022, as reported by barchart.com. This development presents a conflicting outlook for Bitcoin (BTC) traders. A growing money supply typically suggests looser financial conditions, which can encourage investment in riskier assets like cryptocurrencies. However, if this growth outpaces the economy, it could lead to inflation, as noted by TIOmarkets. The St. Louis Federal Reserve has previously observed that M2 growth has a lagged impact on PCE inflation, its preferred measure. Therefore, this recent surge in M2 could fuel future inflation, potentially complicating the Federal Reserve's path toward interest rate cuts and creating headwinds for BTC.

According to @cas_abbe, the U.S. M2 money supply reached a record high of nearly $22 trillion at the end of May, surpassing its previous peak from March 2022, according to data from barchart.com. This development presents mixed signals for Bitcoin (BTC) traders. On one hand, a rising money supply typically suggests looser financial conditions, which can encourage investment in riskier assets like Bitcoin, as noted by TIOmarkets. On the other hand, if this monetary growth outpaces the economy, it could fuel inflation, potentially reducing investor risk appetite and pressuring the Federal Reserve to delay interest rate cuts. The St. Louis Federal Reserve has previously noted a lagged relationship between M2 growth and PCE inflation. Therefore, the current surge in M2 could lead to higher inflation in the coming months, making it more difficult for the Fed to implement rate cuts, a scenario that could act as a headwind for BTC's price.

According to @KobeissiLetter, the U.S. M2 money supply has reached a record high of nearly $22 trillion, presenting a conflicting outlook for Bitcoin (BTC). Data from barchart.com confirms this new peak. Historically, a rising money supply can signal looser financial conditions, which is often bullish for risk assets like Bitcoin. However, TIOmarkets warns that if this growth outpaces the economy, it could lead to inflation, potentially prompting the Federal Reserve to maintain a hawkish stance. The St. Louis Federal Reserve has previously observed a lagged correlation where M2 growth precedes increases in PCE inflation, suggesting future inflationary pressures could build. In its latest meeting, the Federal Reserve held interest rates steady but adjusted its economic projections, now forecasting higher inflation (3.0% PCE) and lower GDP growth (1.4%) for the year. While the number of expected rate cuts for the current year remains the same, the long-term outlook indicates fewer cuts than previously anticipated. Following the announcement, Bitcoin (BTC) remained stable, trading around $104,200.

According to Cas Abbé on Twitter, BTC price movements are closely following the trajectory of the M2 money supply, with current consolidation phases having been signaled early by changes in M2. Abbé highlights that this correlation could indicate a strong likelihood of BTC revisiting the $100,000 to $102,000 range before establishing a bottom, followed by a potential rally above $130,000. Traders should closely monitor M2 supply data as a leading indicator for BTC price action, as this macroeconomic relationship adds a significant layer to crypto market forecasting. Source: Cas Abbé via Twitter, June 19, 2025.

According to @AltcoinGordon, global liquidity is increasing as M2 money supply rises and quantitative easing (QE) policies return, making capital cheaper and boosting risk-on assets like cryptocurrencies. For traders, this environment historically fuels higher volatility and upward momentum for high-beta assets such as BTC and ETH. Monitoring central bank liquidity trends and M2 expansion is essential for anticipating potential crypto market rallies. (Source: @AltcoinGordon, June 16, 2025)

According to @AltcoinGordon on Twitter, Bitcoin's price action continues to closely follow the growth and movement of the M2 money supply, as shown in the most recent chart shared on June 3, 2025 (source: Twitter/@AltcoinGordon). This correlation highlights the importance of monitoring macroeconomic liquidity conditions for cryptocurrency traders. Understanding shifts in M2 can help traders anticipate potential trend reversals or sustained rallies in Bitcoin and the broader crypto market. A sustained increase in the M2 money supply could signal continued bullish momentum for Bitcoin, while tightening liquidity may indicate caution for short-term positions.

According to KookCapitalLLC on Twitter, recent data shows that the M2 money supply has experienced a sharp vertical increase, which historically correlates with upward momentum in Bitcoin price trends. Traders are closely monitoring this macroeconomic indicator because past surges in M2 have often preceded bullish moves in major cryptocurrencies such as Bitcoin (source: KookCapitalLLC, April 26, 2025). Analyzing M2 growth is essential for short- and long-term trading strategies, as liquidity expansion may signal potential for significant price action in digital assets.

According to Miles Deutscher, stablecoins now constitute over 1% of the total global M2 money supply, a significant milestone reached much faster than anticipated just five years ago (Source: @milesdeutscher, Twitter, April 25, 2025). This rapid adoption highlights growing institutional and retail confidence in digital assets, increasing stablecoin liquidity and its influence on crypto trading volumes. The expanding stablecoin market share enhances on-chain liquidity and facilitates larger capital flows into major cryptocurrencies such as Bitcoin and Ethereum, potentially reducing volatility during high-volume trading periods. Traders should monitor this trend as it may contribute to deeper order books and narrower bid-ask spreads across crypto exchanges, providing more efficient trading conditions (Source: @milesdeutscher, Twitter).

According to Trevor.btc, the current state of the M2 Money Supply is favorable for Bitcoin, suggesting a bullish trend for May 2025. The increase in M2 supply, which measures the amount of money in circulation that includes cash, checking deposits, and easily convertible near money, can lead to inflationary pressures, thus potentially driving investors towards Bitcoin as a hedge (source: @TO). This trend could present a trading opportunity for those looking to capitalize on Bitcoin's upward momentum.

According to Milk Road, an increase in global liquidity, particularly the M2 money supply, positively impacts Bitcoin prices as more capital flows into financial markets, eventually finding its way into BTC, leading to potential price increases.

According to Michaël van de Poppe, a significant rally in the M2 Money Supply could lead Bitcoin to reach an all-time high (ATH) this quarter. If the correlation holds, this scenario would also suggest an increase in CNH/USD, a decrease in bond yields, a fall in gold prices, and a decline in the DXY index. These movements could present strategic trading opportunities for investors focusing on cryptocurrency and related financial markets.

According to KookCapitalLLC, the global M2 money supply is about to reach an all-time high (ATH), which could have significant implications for Bitcoin's market value. This analysis suggests that as liquidity increases, it may drive more investment into Bitcoin, potentially pushing its price higher. Traders should monitor these macroeconomic indicators closely, as changes in money supply can influence asset valuations, including cryptocurrencies.