Bitcoin The Ultimate Hedge Against $97T Global Liquidity Bubble

In the intricate dance of global finance, few metrics are as telling as the M2 money supply a measure of global liquidity. Currently sitting at a staggering $97 trillion and climbing, this figure encapsulates the vast flow of cash, deposits, and near-money circulating across the global economy. For Bitcoin investors, this metric is far more than an academic curiosity; it’s a compass guiding market sentiment and price trends.

Global M2 money supply is at $97T and increasing.

What is Global Liquidity?

Global liquidity, often equated with M2 money supply, represents the total volume of currency and near-money available in the financial system. This includes physical cash, checking and savings deposits, money market accounts, retail mutual funds, and short-term time deposits under $100,000. Importantly, M2 reflects not just static wealth but the fluid potential for spending and investing.

The Central Banks Driving Liquidity

Global liquidity isn’t monolithic. It’s the aggregate result of monetary policies from the world’s most influential central banks:

USA: Federal Reserve

China: People’s Bank of China