M2, a key measure that includes cash, checking accounts, savings, and money market deposits, hit $21.94 trillion by the end of May. Year over year, M2 has grown by 4.5%.
According to analysts from The Kobeissi Letter, this marks the 19th consecutive monthly increase and surpasses the previous peak of $21.86 trillion recorded in March 2022.
Even more telling is the inflation-adjusted M2, which rose 2.1% over the same period. This marks the most significant inflation-adjusted increase in over two years. Since 2020, the US money supply has surged by nearly $7 trillion, representing an increase of roughly 45%.
This represents the worst H1 performance since the collapse of the Bretton Woods system in 1973 and the weakest six-month stretch since 2009.
Analysts say this continuous decline reflects the dollar’s eroding purchasing power and signals long-term structural issues.
While it remains uncertain whether this momentum will spur a continued Bitcoin rally, many investors believe the conditions favor the bellwether digital asset.
Bitcoin could benefit from a renewed wave of capital seeking returns beyond fiat currencies if the trend realigns.
