 | Just crossed with this interesting tweet talking about Global liquidity surge. According to different charts that you can find just searching about M2, etc like the one below, you will see that Money supply M2 keeps rising This is very important because we are in a world that looks like financial markets usually defy logic but one of the metrics that quietly use to shape long term trends is the global money supply also known as M2. M2 represents the total amount of money ready and available in an economy, including cash, deposits and other near money assets. When M2 expands it means more liquidity is available for everything from investments to speculation and historically one of the asset classes that has closely tracked this expansion is crypto. Currently even with the tight monetary stance in US, M2 is growing around 4% per year. Meanwhile Chine is leaning into economic stimulus pushing M2 up by 8% annually. Globally speaking M2 is expanding at a 3.25% rate. This is where things get interesting. A 3.25% increase can sound like not a lot but you need to consider the scale. The global M2 is estimated at around $108.4 trillion meaning that over $3 trillion in fresh liquidity has been introduced into the system this year alone. To put it more into perspective, that is the entire market cap of the WHOLE crypto market that is according to CoinMarketCap $2.97 trillion. If you are wondering why assets prices tend to rise in tandem with money creation, this is your answer and being crypto a hot topic, a lot of that money will flow in this amazing market so get ready for an space trip. Source: [link] [comments] |
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