💸 $22 Trillion M2 Tsunami—Is Crypto the Next Big Beneficiar
Ayeshhaaa
Updated at: 19 hours ago
{"content":"💸 $22 Trillion M2 Tsunami—Is Crypto the Next Big Beneficiary?
As of Friday, the US M2 money supply, which includes cash, savings, and other liquid assets, was at an all-time high of $22.02 trillion. This is because the quantitative tightening slowdown happened in May 2022. Inflation, on the other hand, is still at 2.7%, which is more than the Federal Reserve's goal of less than 2%.
When the M2 money supply goes higher, it usually means that the market is more liquid, which might make people want to buy speculative risk assets like Bitcoin (BTC). But higher supply risks lower the US Dollar's buying power since inflation goes up.
With inflation rising and the US Dollar losing its worldwide supremacy, it appears like the best thing to do is to switch to alternatives. Many financial firms and companies are going this way, building up Bitcoin reserves and supporting the notion of BTC as "digital gold."
Trump is still talking about Powell and lowering interest rates.
On Thursday, US President Donald Trump went to the Federal Reserve Building to look at renovations and new additions. He was joined by Chairman Jerome Powell, Senator Tim Scott, and others. Trump spoke about the big cost overruns, but he was still hopeful, saying, "Our country is doing very well and can afford just about anything."
Trump says we need to "LOWER INTEREST RATES!" besides the improvements. The Federal Open Market Committee (FOMC) says there will be two interest rate decreases later in 2025, bringing the total to 50 basis points.
When rates go down, speculative, risky assets tend to flow in more because investors can get cash at cheaper rates. This might raise the value of the crypto market.
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