China's M2 money supply has increased by 8% in 2025, reaching $46.6 trillion, surpassing the U.S. supply, which has grown by only 1%. This significant liquidity divergence is seen by analysts as a potential long-term driver for Bitcoin's valuation. Historically, higher M2 levels have been associated with increased demand for risk assets, including cryptocurrencies. However, analysts caution that rising M2 alone may not be sufficient to elevate crypto prices if global investor sentiment remains cautious.