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M2 Holds $120T, Growth Cools: Crypto Tailwinds Tested
Global M2 money supply stayed above $120 trillion. Short-term growth slowed. Bitcoin's MVRV Z-score rose to 0.36; ETF inflows revived. Durability of ETF demand is the next catalyst.
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Global M2 money supply held above $120 trillion as of July 6, according to data compiled by BizioMetrics. The short-term growth rate slowed, with the seven-week metric turning negative for the first time in recent weeks.
The total stood at $120.34 trillion, about 0.06% below the prior week's $120.41 trillion. The seven-week M2 growth rate fell to -0.27% from 0.72% the week before. The decline points to softer near-term liquidity flow.
The longer-term picture firmed. Year-over-year M2 growth rose to 6.27%, up 1.44 percentage points from 4.83% the week prior. Annual liquidity expansion has broadened even as weekly impulses weaken.
The divergence between short-term and annual growth creates a split signal for crypto markets. Bitcoin has historically tracked broad money supply changes with a lag of roughly 10 weeks, analysts have noted. A decelerating short-term liquidity impulse can reduce immediate tailwinds for risk assets. Stronger year-over-year growth supports the medium-term narrative that macro liquidity is still expanding.