Global M2 Surge Falls Short of Expected Boost for Bitcoin

The cryptocurrency market is still reeling from recent turbulence, and despite a $1 trillion jump in Global M2 supply, Bitcoin could still fall. The surge in M2, which captures cash and liquid deposits worldwide, has historically been linked to price bottoms for Bitcoin.

However, the current year-over-year growth rate remains positive, with no clear indication of a move into negative territory. This suggests that Bitcoin and other altcoins may continue to slide before a reversal emerges.

China's $800 billion contribution to the Global M2 surge has been notable, but its limited exposure to Bitcoin has kept its impact minimal. Hong Kong's Bitcoin spot exchange-traded funds (ETFs) have absorbed only 48.1 BTC since August began, worth around $3.057 million.

The U.S. market remains a key factor in Bitcoin's performance, with the country's money supply continuing to expand against other economies' M2 readings. The recent surge in Global M2 has supported U.S. crypto ETF inflows of $1.10 billion, which could filter through to Bitcoin and select altcoins in the near term.