The cryptocurrency market experienced a significant downturn in the fourth quarter of 2025, with market capitalization declining by 21%. This drop comes despite the global M2 money supply reaching nearly $130 trillion, driven largely by China's $47.7 trillion contribution.
In response to these economic conditions, the United States has implemented easing measures, including a $40 billion Treasury plan, to bolster risk assets. However, the crypto market remains below its Q3 2025 peaks as investor sentiment remains cautious. Meanwhile, Japan, India, and South Korea reported contractions in their M2 supplies, while global liquidity trends hint at a potential bullish shift heading into 2026.
Crypto Market Cap Falls 21% in Q4 2025 Amid Global M2 Supply Surge
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