In the US economy M2 Money Supply He continued to rise in December 2024 compared to the previous month. Existing data show that the money supply reaches $ 21.5 trillion. The existing figures indicate that the highest level of all time is approaching with $ 22 trillion. Experts emphasize that the increase in M2 may positively affect risky assets. Especially Crypto Money MarketIt is predicted that it can benefit from this situation.
What does the increase in M2 Money Supply mean?
M2 Money Supply is in circulation in an economy cash, Futures deposits and other liquid assetsrefers to the sum of in. According to data, a new summit has been recorded every month since January 2024. Although the Federal Reserve (FED) carried out strict monetary policy in this process M2‘s rise is remarkable.
The FED keeps the interest rates high to control inflation, but also continues to expand financially. Especially Consumer Price Index The relationship between (CPI) and M2 is also a matter of debate. The increase in money supply can trigger inflationist pressures. Recently, however, the slowdown in the CPI raises the possibility of the FED to go to a policy change in 2025.
While market participants expand the money supply inflationHe is wondering how to keep flour under control.
Possible reflections of the rise in M2 to the crypto currency market
The rise in M2 accelerates the introduction of liquidity into the financial system. Historical Data liquidity It shows that abundance increases orientation to risky assets. The crypto money market is one of the most affected markets. M2 expansion in 2021, for example Bitcoin 
$102,381.3 And altcoin‘s record levels.
Market analysts are available crypto currencyHe says he can create opportunities for s. However, the possibility of returning to aggressive policies of the Fed undermines this enthusiasm and causes uncertainty. For this reason, investors are warned to be prepared for short -term fluctuations. In the long run, the growth in money supply is expected to support asset prices and bring the rally in risky assets.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
