According to Miles Deutscher, the US stock market valuations have reached a multi-decade peak when compared to the M2 money supply. This elevated valuation level does not automatically indicate an imminent crash, but it does increase market sensitivity to negative shocks that may occur. Traders should be cautious and monitor for potential market corrections.

According to The Kobeissi Letter, the market capitalization of US stocks relative to the US M2 money supply has reached 289%, marking its highest point since the 2000 Dot-Com Bubble. This ratio has increased by approximately 100 percentage points over the last two years. This rapid rise in the ratio may influence trading strategies as it suggests a potential overvaluation in the stock market, akin to conditions preceding past market corrections.

According to The Kobeissi Letter, the market capitalization of US stocks relative to the M2 money supply has reached 289%, marking the highest level since the Dot-Com Bubble of 2000. Over the past two years, this ratio has surged by approximately 100 percentage points, signaling a significant increase in stock valuation compared to money supply. This rapid rise could have implications for traders, as similar patterns were seen during the late 1990s over a longer period of three years.

According to Miles Deutscher, the lack of expansive growth in M2 global year-over-year change is a significant factor in the current stagnation of Bitcoin price cycles compared to 2017 and 2021. Deutscher suggests that an increase in M2 money supply will act as a major catalyst for growth in risk-on assets like Bitcoin. He plans to release a detailed analysis on quantitative easing and liquidity flows, which will explain the timing and mechanisms of this potential growth.

According to CryptoMichNL, the M2 money supply has played a significant role in cryptocurrency market cycles. During 2016-2017, the M2 supply expanded considerably, which sustained the market cycle until the end of 2017. In 2021, the M2 supply increased sharply, indicating potential impacts on the current cycle. These historical data points are crucial for traders to consider when analyzing market trends.