The growth in Global M2 Money Supply (Patreon)
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When central banks increase the money supply and inject liquidity into the economy, Bitcoin benefits. On the other hand, when monetary policies become stricter and the economy shrinks, investors should tread carefully.
Current macroeconomic indicators highlight this divide. The growth in M2 Money Supply and U.S. Net Liquidity points to an environment that supports the rise of risk assets like Bitcoin.
Yet, a decrease in Global Central Bank Assets signals a move toward tighter monetary conditions, potentially hampering Bitcoin's progress. Can you imagine what will happen when CBs ease?