Federal Reserve data showed about $623 billion has been added since January, reviving debate over whether expanding liquidity could support risk assets including Bitcoin.
US M2, a broad measure of money supply, climbed to a record $23.05 trillion in May on a seasonally adjusted basis, marking a fifth consecutive monthly increase from $22.43 trillion in January. The latest Federal Reserve figures imply roughly $623 billion has been added year to date, including about $247.8 billion from the prior month alone. The increase has reopened discussion about liquidity expansion and whether easier financial conditions can bolster risk assets including Bitcoin. Market participants will next look to the late-July M2 release for confirmation of whether the trend is continuing.