The U.S. Federal Reserve's latest data reveals that the seasonally adjusted broad money supply (M2) reached a record $23.05 trillion in May, surpassing the $23 trillion mark for the first time. This represents a $247.8 billion increase from April and marks the fifth consecutive month of growth, totaling a $623 billion rise since the start of the year. The surge in M2 has reignited discussions about potential shifts in monetary policy, with some suggesting a form of "stealth easing" by the Fed.
The increase in M2 has also bolstered the narrative of Bitcoin as a hedge against fiat currency devaluation, given its capped supply of 21 million coins. This perspective is gaining traction as global central banks continue to boost their gold reserves, underscoring demand for assets perceived as hedges against fiat expansion. The next M2 data release is anticipated in late July, with market participants closely monitoring for further liquidity expansion and potential policy shifts by the Fed.
U.S. M2 Money Supply Hits Record $23.05 Trillion, Fuels Bitcoin Rally Narrative
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