The growth of the M2 money supply and aggressive monetary easing by China and the US Federal Reserve have driven asset price increases, with cryptocurrencies leading the charge since the recent FOMC meeting. The liquidity injected into the global economy by central bank policies has been crucial in supporting financial markets, with the combined balance sheets of the top 15 central banks reaching levels last seen in 2024. The M2 money supply has consistently grown, indicating ongoing monetary expansion, and there has been a strong correlation between the M2 money supply and the performance of the S&P 500 over the past five years. Bitcoin has achieved an impressive compound annual growth rate (CAGR) of 50% during this period, reflecting its growing prominence as an asset class. As long as central banks continue to provide support, asset prices are likely to continue rising, although the sustainability of this trend remains uncertain.



Other News from Today