US money supply just hit a record high.
M2, the Federal Reserve’s broad measure of dollars circulating through the economy, climbed to $23.052 trillion in May.
That’s according to the Fed’s H.6 Money Stock Measures release published on June 23, and it marks a $247.8 billion jump from April’s $22.8045 trillion.
The numbers behind the record
M2 includes everything from physical cash and checking accounts to savings deposits and money market funds.
The year-over-year growth rate hit 5.6% in May, marking the fastest expansion since July 2022.
That earlier period came as the Fed was still grappling with the aftermath of its pandemic-era money printing spree, which had pushed M2 growth into double digits.
After the Fed’s rate hikes began in 2022, M2 actually contracted for several months, something that hadn’t happened in decades.
What M2 means for crypto
Analysts currently note that bitcoin remains below its liquidity-implied fair value according to various metrics, a dynamic worth tracking on the US M2 vs bitcoin chart.
The stablecoin market offers another lens into this dynamic.
USD stablecoin supply rose to approximately $312 billion in May, which now accounts for about 1.35% of total US M2.
What this means for investors
The 5.6% annual growth rate is elevated, though still below the double-digit rates seen during the pandemic stimulus era.
