Bitcoin may be about to take off as China’s money supply just hit an all-time high.

In the past few weeks China’s M2 money supply — which includes cash, savings and liquid deposits — has reached 326 trillion Yuan or $44.7 trillion.

This is getting global attention, especially from bitcoin analysts who think it will push the scarce digital asset to the much-awaited $90,000 price.

China’ M2 money supply graph — Bitcoin News on X

“China’s M2 money supply just hit 326 trillion. The money printers are back on. Risk assets are about to go parabolic,” said analyst Kong Trading.

M2 money supply is an economic indicator used to track how much liquid money is in the system.

When M2 goes up it means the government is printing more money and it’s easier for people and businesses to spend, borrow and invest.

This extra liquidity can fuel investment in assets that are considered volatile and risky, like bitcoin.

“If China’s M2 keeps growing, it could give Bitcoin a push upwards, based on what we’ve seen before,” said Enmanuel Cardozo D’Armas, market analyst at Brickken.

As of mid April 2025, bitcoin is trading at around $88,000, up from lows of $75,000 earlier this month, and analysts are watching to see if it can break through the $90,000 resistance.

According to experts, that’s a psychological and technical level. If it breaks above that, it will open the door for an even bigger rally, possibly to $100,000.

Bitcoin is doing well, even as global markets are dealing with challenges like U.S.-China trade tensions and uncertain Fed policy.

Fed Chair Jerome Powell just said interest rates won’t be cut in the near future and investors are on edge.

But bitcoin is holding steady and even outperforming U.S. equities in the past few months.

It’s not just China. Global M2 money supply has been growing too, up by $4.5 trillion this year. European Central Bank (ECB) has cut interest rates several times and that’s adding to the global quantitative easing.

Global M2 money supply vs bitcoin

This extra liquidity globally is making investors more comfortable with assets like bitcoin as traditional inflation hedges like gold are doing well.

Analysts say bitcoin often follows gold’s performance but with a delay of several months. Analyst Cryptollica thinks bitcoin will hit $155,000 in the midterm, following gold’s lead.

Even with optimism around bitcoin and rising liquidity, experts warn there are risks. The U.S.-China trade war is heating up again and Trump’s 90-day tariff pause nears end.

That could cause market volatility and delay bitcoin’s rise to $90K.

Regulatory uncertainty, especially in the U.S., is still weighing on investor sentiment.

China is also reportedly looking to liquidate seized bitcoin through private firms, which adds more complexity to the market.

Despite the headwinds, institutional interest in bitcoin is strong. Bitcoin ETFs in the U.S. saw $100 million in inflows recently, which means big investors are still bullish.

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Filed under: Altcoins - @ April 22, 2025 11:02 am