China’s M2 money supply reached a record $326 trillion in March 2025, reflecting a significant increase from $320.5 trillion in February, as reported by Trading Economics, indicating a rapid expansion of liquidity that can influence global markets.
Analysts suggest this surge in China’s M2 could push Bitcoin toward $90,000, aligning with historical trends where Bitcoin prices correlate with global M2 growth, as noted by bitcoincounterflow.com, with a typical delay of about 108 days according to Colin Talks Crypto.
Despite the potential for a Bitcoin rally, China’s economic indicators like deflationary pressures and high youth unemployment raise concerns of a looming liquidity trap, as discussed by the Richmond Fed, which could complicate the expected bullish impact on cryptocurrencies.
