According to Edward Dowd on Twitter, the velocity of M2 money supply is starting to decline after a period of acceleration that began in 2022. Dowd attributes some of this previous acceleration to government policy impacts, particularly increased immigration flows. For crypto traders, a declining M2 velocity may indicate tightening liquidity conditions, which historically correlates with reduced risk appetite and increased volatility across crypto markets. Monitoring these macroeconomic liquidity shifts, as highlighted by Dowd, is crucial for anticipating potential bearish pressures on major cryptocurrencies and adjusting trading strategies accordingly. (Source: Edward Dowd, Twitter, May 2, 2025)