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⛓️ Crypto🔴 Bearish
M2 money supply is surging again – so why isn’t this bullish for Bitcoin anymore?
🤖AI Summary
U.S. M2 money supply reached a record $22.442 trillion in January 2026, up 4.29% year-over-year, but Bitcoin hasn't responded with the traditional bullish correlation to increased liquidity. This breaks the historical 'liquidity up, risk up' narrative that has previously driven cryptocurrency markets during periods of monetary expansion.
Key Takeaways
- →M2 money supply hit a record $22.442 trillion in January 2026, up $922.4 billion from the previous year.
- →The 4.29% year-over-year increase in M2 represents significant monetary expansion.
- →Bitcoin has not shown the expected bullish response despite increased liquidity in the financial system.
- →The traditional correlation between money supply growth and Bitcoin price appreciation appears to be weakening.
- →This divergence challenges the conventional 'liquidity up, risk up' investment thesis for cryptocurrency markets.
#bitcoin#m2-money-supply#monetary-policy#liquidity#correlation#macroeconomics#fed#cryptocurrency-markets
Read Original →via CryptoSlate
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