Global M2 Money Supply has surged to an all-time high of $108.4 trillion, raising new questions about Bitcoin’s next move.
The milestone comes amid escalating economic uncertainty following former President Donald Trump’s new “liberation day” tariffs and China’s rapid retaliation measures that are shaking global markets together.
What is M2 and why is it important to Bitcoin?
Despite extreme volatility over the past two weeks, the average Bitcoin has barely changed.
Analysts argue that Bitcoin’s latest volatility reflects macroeconomic fear and changing long/short ratios, but the biggest cryptocurrency isn’t close to the bare market.
This is primarily due to the historical correlation between rising M2 levels and important Bitcoin rallies.
M2 is a broad measure of national or regional money supply. This includes physical cash, checks, savings deposits, and other current assets that can be converted to cash immediately.

Bitcoin and M2 Money Supply Chart for the past year. Source: Bgeometrics
An increase in M2 usually indicates greater liquidity in the financial system. It simply means more money than risky assets like stocks, real estate, or cryptocurrency like Bitcoin often seeks returns.
The past surge in M2 money supply preceded major Bitcoin rallies. Following the stimulation programme in the 2020-2021 Covid era, US M2 supply has exceeded 25%.
This was correlated with an all-time high of over $69,000 by November 2021, from $10,000 under $10,000 in mid-2020.
“Marriottresses say Trump’s tariffs are primarily a negotiation strategy, and the impact on businesses and consumers remains manageable. In addition to uncertainty, there are inflationary pressures that could challenge the outlook for US reserves to cut rates. Maksym Sakharov, co-founder of Wefi Deobank, said:
Bitcoin prices also often drag global M2 growth for around two months.
As the M2 accelerated from late February and current spikes raised this to the highest level ever, market watchers suggest that Bitcoin can see the slower but strong reverse as liquidity continues to expand.
However, macroeconomic headwinds can ease short-term benefits. Trump’s tariff shock and China’s strict response have already caused a sudden Wall Street loss in five years.
Investors can delay capital allocation to highly volatile assets until trade tensions stabilize.
Still, with the M2 surge and Bitcoin supply being capped, the updated bullish move setup remains the same. That’s when historical patterns are preserved and the market regains confidence.