Why M2 Money Supply is the New Black for Crypto Enthusiasts! 💸

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What to know:

  • The M2 money supply is like that friend who just can’t stop eating at the buffet—up, up, and away! In December 2024, it hit $21.5 trillion, just a smidge away from its all-time high of $22 trillion. 🍽️
  • When M2 money supply goes up, it’s like a green light for risk assets. So, if you’ve got a risky investment, now might be the time to throw caution to the wind! 🚦

So, what’s the deal with the M2 money supply? It’s basically the total amount of cash floating around in the economy, including everything from your piggy bank to that mysterious jar of coins you keep in the back of your closet. Meanwhile, the CPI index is like the economy’s mood ring, tracking how prices change over time—spoiler alert: it’s usually not happy. 😬

As the M2 money supply keeps growing, it’s like a party where everyone’s invited, and guess what? Risk assets are the first to hit the dance floor! 💃🕺

Since January 2024, the M2 money supply has been breaking records like it’s training for the Olympics. And while the Federal Reserve is trying to play the role of the strict parent by tightening things up and keeping interest rates high, the M2 money supply is like, “Hold my drink, I’m still growing!” 🍹

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2025-01-29 13:57