In December 2024, the M2 money supply in the United States rose to $21.5 trillion, nearing its historical peak. This was noted by senior analyst CoinDesk James Van Straten.
The measure includes all cash and non-cash money in circulation. Its size has a direct impact on inflation.
The expert pointed out that M2 has consistently increased every month since the beginning of the year.
“The continued growth of the money supply is an optimistic indicator for risk assets, as it suggests that more liquidity is entering the system, which typically ends up in them first,” said Van Straten.
He also emphasized that the expansion of M2 occurred despite the tightening of the Fed’s quantitative easing policy while maintaining a high base rate. The central bank aims to achieve a target consumer inflation rate of 2%, but by the end of December, the price index rose by 2.9% year-on-year.
Meanwhile, the total capitalization of stablecoins increased to a new high of $222.6 billion, according to CoinGecko. Several experts consider the inflow of funds into the segment a bullish signal for cryptocurrencies.
“Stablecoins” in the digital asset market act as fiat proxies and are widely used for investments, among other things.
According to the forecast by VanEck specialists, stablecoins will become a key part of global trade, and by the end of 2025, the daily transaction volume in them will reach $300 billion.