M2 is a broad measure of money supply that includes cash, checking deposits, savings accounts, and money market securities. This chart uses official US M2 Money Stock data from the Federal Reserve (FRED).
Why Compare Bitcoin to M2?
Bitcoin is often viewed as a hedge against monetary inflation. As central banks expand the money supply (increase M2), many believe Bitcoin's fixed supply makes it an attractive store of value. This chart helps visualize that relationship.
Interpretation:
When M2 expands rapidly (especially since 2020), it often correlates with Bitcoin price appreciation. However, correlation doesn't imply causation, and many other factors influence Bitcoin's price.
