China's M2 Money Supply Surges 20% to $326 Trillion, Boosting Bitcoin to $90,000

China’s M2 money supply has reached an unprecedented high of $326 trillion, marking the highest level ever recorded. This surge in liquidity indicates that more money is circulating within the economy, which can have significant implications for various asset classes, including Bitcoin.

When the M2 money supply increases, it typically means that the government is injecting more liquidity into the system. This can make borrowing easier and encourage spending and investing. With more cash in circulation, there is a higher likelihood that individuals will invest in riskier assets such as Bitcoin, other cryptocurrencies, stocks, and real estate. This increased demand for riskier assets can drive up their prices.

Analysts suggest that the surge in China’s M2 money supply could have a profound impact on Bitcoin’s price. Popular crypto analyst Kong Trading noted that the “money printers are back on” and that risk assets are about to experience significant growth. This sentiment is echoed by other experts who believe that the increased liquidity could push Bitcoin’s price toward $90,000.

According to Brickken analyst Enmanuel Cardozo D’Armas, if China’s M2 money supply continues to grow, Bitcoin could soon test the $90,000 mark. Currently, Bitcoin is trading around $85,000, reflecting a rise of 0.5% in the last 24 hours. Market expert and Chartered Market Technician (CMT) Aksel Kibar supports this prediction, emphasizing the importance of Bitcoin staying above its year-long average price to maintain its upward trend. He also highlighted that $90,000 is a critical level to watch, as breaking above it could propel Bitcoin toward the next significant milestone of $100,000.

While the outlook for Bitcoin is promising, analysts caution that there are still uncertainties. A possible interest rate cut in the U.S. during May or June could further boost crypto prices. However, negative factors such as stricter regulations, rising trade tensions, and the end of Trump’s 90-day tariff pause could create volatility and hinder Bitcoin’s upward trajectory. Despite these challenges, the increased liquidity from China’s M2 money supply presents a significant opportunity for Bitcoin to reach new heights.