2025-12-27 10:22:19

Pay attention to an important data signal — US M2 money supply grew by 4.3% year-over-year in November this year, reaching a new record high of over $22.3 trillion. More notably, this is the 21st consecutive month of positive growth, indicating continuous liquidity release.

From a historical perspective, the current money supply is more than $400 billion higher than the peak in March 2022. What does this mean? Compared to the average growth rate since 2000, the current pace of liquidity expansion is significantly accelerating.

Whenever the base money increases substantially, idle funds in the market tend to seek an outlet. From stocks to commodities to crypto assets, this liquidity spillover effect often drives up the valuation expectations of risk assets. In an environment of ample liquidity, investors’ risk appetite also tends to increase — which could support the long-term trend of the crypto market.

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down_only_larry

· 10h ago

M2 has broken records now, great, more and more money, but our coins are still the same small amount I believe in the logic of liquidity overflow, but I'm just afraid it’s all just illusions 21 months of positive growth sounds impressive... but does it really flow into crypto? Real money entering the crypto space? I uh... highly doubt it Remember the last time liquidity easing caused a sharp drop? Do you still believe in this now? 2.23 trillion... feels like it's getting further and further away from me This logic has been worn out, the question is, when will the money come to us Wait, does this mean it's going to rise? Or is it just another cut? Even after 21 months, the coins haven't risen, maybe the liquidity overflow is heading in the wrong direction

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DAOplomacy

· 10h ago

ngl this $22.3T m2 thing is getting spicy... 21 consecutive months of printer go brrr, yet somehow we're supposed to believe inflation is "transitory" lmao. the game theoretical implications here are non-trivial, tbh

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PonziDetector

· 10h ago

22.3 trillion? This time they've really gone crazy with printing money. How big of a bubble can the liquidity overflow effect blow up...

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ParallelChainMaxi

· 10h ago

Is liquidity overflow still relying on us to take the plunge? --- 21 months of positive growth... Is this finally the real deal? --- Breakthrough of 22.3 trillion reaching a new historical high, money is flowing into risk assets, how can crypto not rise? --- The key is the speed, much faster than the 2000 moving average, obvious stacking effect. --- Idle funds are looking for an exit, in plain words, just waiting for us. --- 21 consecutive months? This data looks exciting. --- Compared to the peak in 2022, an increase of over 400 billion, the question is where will this money flow to in the end? --- Here we go again, every time liquidity is mentioned, there's an optimistic outlook, but what about the other side? --- Breaking records in M2 is not surprising, the real question is whether it can flow into crypto. --- Feels like another story being told, everyone just wait to get cut.

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