The global M2 money supply is one of the main indicators of liquidity in the economy. Historically, the growth of M2 has created capital inflows into risky assets, including bitcoin.

The previous liquidity signal worked well , look

The graph shows:

The black line is the global M2 ($BN) money supply with a 10–week lag.

The pink line is the price of bitcoin.

How did it work before?

In 2023-2024, the growth of M2 led to the growth of BTC.

Then, in the middle of 2024, a liquidity squeeze followed – bitcoin adjusted

Now M2 is growing again, and BTC is starting to move up.

What's next?

Historically, bitcoin has followed the dynamics of M2 with a lag of several weeks.

If this trend continues, BTC may update its historical highs in 2025.

Conclusion

Global liquidity is a key factor for Bitcoin.

If the M2 growth continues, BTC may enter a new phase of the bull market.

Now everything depends on whether central banks continue to ease financial conditions.