As the U.S. and China face off in a renewed tariff battle, something big is happening behind the scenes -China’s money supply has just hit a record-breaking $326 trillion. That’s more cash flowing through its economy than ever before. It’s a move that could send shockwaves far beyond China’s borders, especially in the world of crypto. Some experts believe this surge in liquidity might be the spark that sends Bitcoin soaring to $90,000.
Could it affect your investments, even if you’re not in China? Let’s break it down.
What Is M2 and Why Does It Matter?
The M2 money supply is a way to measure how much money is moving through a country’s economy. It includes cash, savings, and easily accessible bank deposits. When M2 rises, it often means the government is adding more liquidity into the system. This can make it easier for people and businesses to borrow, spend, or invest.
According to new data, China’s M2 money supply has reached an all-time high of $326 trillion. Financial experts say this kind of liquidity can boost prices in riskier markets like cryptocurrencies, stocks, and real estate.
More Money, More Risk-Taking
When there’s more cash available, people are often more willing to invest in assets that have the potential for big returns, like Bitcoin and other cryptocurrencies. Popular crypto analyst Kong Trading put it this way:
“China money printers are back on. Risk assets are about to go parabolic.”
Simply put, with more money in the system, prices for things like Bitcoin may start rising quickly.
Could Bitcoin Hit $90,000 Soon?
According to Brickken analyst Enmanuel Cardozo D’Armas, if China’s M2 money supply continues to grow, Bitcoin might soon test the $90,000 mark. As of now, Bitcoin is trading around $85,000, reflecting a rise of 0.5% in the last 24 hours.
Backing Enmanuel’s prediction, market expert and Chartered Market Technician (CMT) Aksel Kibar shared a similar view. He said that it’s very important for Bitcoin to stay above its year-long average price to keep its upward trend strong.
He also said that $90,000 is a big level to watch. If Bitcoin goes above it, the price could start moving toward the next big goal, $100k.
What Could Get in the Way?
While the outlook for Bitcoin looks strong, experts also warn that several risks could slow things down. A possible interest rate cut in the U.S. this May or June could give crypto markets another boost. But other factors may not be as helpful.
Tighter regulations, rising trade tensions, or sudden policy changes could create roadblocks. One big concern is the end of Trump’s 90-day tariff pause, which is expected to cause more market volatility.
China’s massive money supply growth is drawing attention worldwide – and it could be a major reason Bitcoin continues its climb. Still, investors need to stay alert. The global economy is shifting fast, and while the trend looks promising, the path ahead could be full of surprises.
