US M2 Money vs Bitcoin

US M2 Money vs Bitcoin

circle M2 money supply is a measure of the total amount of currency and near money in a country’s economy. It includes cash, checking deposits, savings deposits, money market accounts, retail mutual funds, and time deposits of less than $100,000.

Central banks are able to increase or decrease the money supply in the economy. Increasing the money supply can decrease the value of the currency already available.

Comparing Bitcoin price with circle M2 money supply can be useful for investors to understand the relative size of Bitcoin’s market capitalization, as well as the relative growth or decline over time. More money in the global system can encourage spending on perceived ‘risk assets’ such as Bitcoin, and can drive further interest towards a hard asset with a fixed money supply schedule.