M2 Money Supply vs. Global Liquidity: Don’t Get Mistaken!

The post M2 Money Supply vs. Global Liquidity: Don’t Get Mistaken! appeared first on Coinpedia Fintech News

The crypto market is always shifting based on global money trends, but a new debate is confusing traders. Meanwhile, popular analyst VirtualBacon recently pointed out a big issue, stating how different sources define M2 Money Supply and global liquidity, leading to mixed market signals.

Some traders see bullish signs in the chart, while others don’t, and the reason comes down to how M2 is measured. Is M2 growing, or are some trackers mixing it with global liquidity?

For Bitcoin, M2 Money Supply growth is a key factor in price movements. M2 measures the available cash reserves, including cash deposits, deposits in checks, savings, market accounts, funds, and deposits of less than $100,000.

Just found this inconsistency causing arguments on M2 vs global liquidity. On many trackers like Bitcoin Magazine Pro, Global M2 is calculated to include central bank balance sheets (AKA Global Liquidity). Whereas the traditional M2 money supply in only the cash reserve… pic.twitter.com/z7afTmymwa