US M2 supply approaches all-time high, a signal of bullishness in the cryptocurrency market

ContractCollector · 2026-01-28T18:14:19+00:00

James Van Stratten, chief analyst at CoinDesk, noted that the U.S. broad money supply (M2) is nearing an all-time high, with current levels around $22 trillion. This trend signals increased liquidity, potentially boosting risk assets like cryptocurrencies in the financial market.

ContractCollector

2026-01-28 18:14:19

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CoinDesk’s chief analyst James Van Straten recently pointed out that as of December 2025, the United States’ broad money supply is nearing an all-time high. In particular, the US M2 supply is approaching the $22 trillion mark, which could be a positive signal for the cryptocurrency and risk asset markets.

M2 Supply Surpasses $21 Trillion, Continuing Strong Growth Trend

According to analyst James Van Straten, the dollar M2 in December last year was approximately $21.5 trillion, slightly below the all-time high. The key point is that the M2 supply continues to grow steadily. This trend is seen as a noteworthy indicator of potential changes in the financial markets.

Liquidity Increase Drives Risk Asset Strength

The increase in US M2 indicates that market liquidity is continuously expanding. As the available liquidity grows, investors seek higher returns, leading to more funds flowing into risk assets, including cryptocurrencies like Bitcoin. This expansion of liquidity can be interpreted as a bullish indicator for the cryptocurrency market and is expected to influence investors’ asset allocation strategies.

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