Recent charts shared by market commentator Crypto Rover show a sharp rebound in M2 money supply levels — a key measure of liquidity — across major economies.
Global money supply keeps climbing.
Bullish for Bitcoin and Crypto. pic.twitter.com/JdXvOizwTy
— Crypto Rover (@cryptorover) November 12, 2025
The data reveals that after a prolonged contraction through 2023, liquidity conditions began improving in late 2024. Now, M2 growth has returned strongly in all three regions, reflecting renewed monetary expansion from central banks. The U.S. money supply (USM2) is rising rapidly toward $22.5 trillion, while China’s (CNM2) continues to climb above 335 trillion yuan. In the Eurozone, M2 has also recovered to above €15.9 trillion after a steep decline last year.
According to analysts, this trend typically acts as a tailwind for risk assets. Expanding money supply often eases liquidity stress in financial markets, providing a more favorable environment for equities, commodities, and particularly cryptocurrencies, which tend to thrive on abundant capital.
The Hidden Macro Gauge That Often Marks Bitcoin Bottoms
The Financial Conditions Index Proxy is a composite index created by Alphractal that measures how tight or loose financial conditions are in the economy.
It’s calculated as the average of the normalized (z-score) values of… pic.twitter.com/XIkJPtLubl— Alphractal (@Alphractal) November 12, 2025
Meanwhile, independent macro researcher Alphractal points to another key signal worth watching — the Financial Conditions Index Proxy (FCI Proxy). This custom-built composite index measures how tight or loose overall financial conditions are, offering a unique way to gauge the economic backdrop influencing Bitcoin cycles.
The index combines four indicators:
When the FCI Proxy rises, borrowing costs increase and risk assets face pressure. When it declines, liquidity flows more freely, supporting Bitcoin and other high-risk assets.
At present, the index stands at -0.3, signaling relatively easy conditions and a healthy market backdrop. Historically, when the reading flips positive, Bitcoin either finds a cycle bottom or transitions into a slower phase of the market.
With global liquidity expanding and financial conditions still loose, the macro setup appears favorable for crypto markets heading into 2026. However, analysts caution that any sharp tightening — visible through a rising FCI Proxy — could challenge Bitcoin’s current momentum.
For now, the overall outlook remains constructive, with liquidity trends continuing to play in Bitcoin’s favor.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
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