M2 Record-Breakingly Surpasses $23 Trillion, Heating Up the Bitcoin 'Liquidity-Driven Rally' Narrative

CoinFeed July 4 news, according to Bitcoin News, the latest data from the U.S. Federal Reserve shows that the seasonally adjusted broad money supply (M2) in May rose to $23.05 trillion, breaking through the $23 trillion mark for the first time and setting a new historical high. M2 increased from $22.80 trillion in April to $23.05 trillion in May, a monthly increase of about $247.8 billion; it has risen for five consecutive months since the beginning of the year, with a cumulative expansion of about $623 billion, indicating continued recovery in U.S. financial system liquidity. This change has sparked market discussion on the direction of monetary policy, with some critics suggesting that the Fed may be re-releasing liquidity in a 'stealth easing' manner; but mainstream economists point out that money supply typically grows naturally with the size of the economy, and part of the current increase also reflects mean reversion after previous contraction. On the asset front, the market is once again focusing on the 'debasement trade' logic.