TechFlow News, July 04, according to Bitcoin news, latest data from the Federal Reserve shows that the seasonally adjusted broad money supply M2 in May rose to $23.05 trillion, breaking through the $23 trillion mark for the first time and hitting a record high. Some industry insiders believe that this growth may reflect the Fed releasing liquidity again after the tightening cycle.
At the asset pricing level, the market generally focuses on the potential impact of liquidity on risk assets. Crypto assets such as Bitcoin are viewed by some investors as tools to hedge against currency depreciation due to their limited total supply, and the relevant "liquidity-driven market" narrative is heating up again. Meanwhile, the continued increase in gold holdings by global central banks as reserve assets is also seen as an indirect hedging signal regarding the long-term stability of the fiat currency system. The next M2 data will be released in late July, and the market will continue to observe whether the liquidity expansion persists.
