Svmuu News: The latest data from the U.S. Federal Reserve shows that in May, the seasonally adjusted broad money supply (M2) rose to $23.05 trillion, surpassing the $23 trillion mark for the first time and reaching a record high.M2 has risen for five consecutive months since the beginning of the year, accumulating a growth of approximately $623 billion from January’s level of $22.43 trillion, with a month-over-month increase of about $247.8 billion, indicating continued expansion of liquidity.
Some industry insiders believe this growth may reflect the Federal Reserve’s (Federal Reserve) re-injection of liquidity following its tightening cycle, sparking discussions about a “resurgence of monetary easing.” However, mainstream economic views point out that the money supply typically grows naturally in tandem with the size of the economy, and the current rise can also be seen as a correction to the previous contraction.
In terms of asset pricing, the market is widely focused on the potential impact of liquidity on risk assets. Cryptocurrencies such as Bitcoin, due to their limited total supply, are viewed by some investors as hedges against currency devaluation, and the narrative of “liquidity-driven rallies” has gained momentum once again.
At the same time, the continued accumulation of gold by global central banks as a reserve asset is also seen as an indirect signal of hedging against the long-term stability of the fiat currency system. The next set of M2 data will be released in late July, and the market will continue to monitor whether the expansion of liquidity persists. (Bitcoin News)