Global M2 Money Supply Jumps $1 Trillion Led by China, But Crypto Prices May Still Suffer

The global M2 money supply jumped by about $1 trillion in just one week, with China accounting for approximately 80% of this increase. This surge in liquidity may seem like a boon for Bitcoin and other cryptocurrencies, but its impact on the market remains limited due to China's restrictive crypto policies.

Despite these challenges, the U.S. money supply growth contributed to strong inflows into crypto ETFs, which reached $1.1 billion and helped stabilize market sentiment. However, ongoing market volatility and stablecoin demand-supply gaps suggest that cryptocurrency prices may still decline before any potential recovery.