View charts in Landscape for optimal mobile experience. For full functionality and best user experience view this website on laptop or desktop.

Bitcoin: Global Liquidity (M2) vs Bitcoin Price

Loading...

Zoom in with touchscreen: Touch and hold with ONE finger then drag.

Zoom in on desktop: Left click and drag.

Reset: Double click.

Indicator Overview

The Global Liquidity chart tracks growth in global money supply from major central banks versus Bitcoin price.

What is Global Liquidity

Global Liquidity is a term used to determine how much money is available in the global economy. It is a term used when referring to the M2 money supply.

M2 money supply is a measure of the total amount of currency and near money in a country’s economy. It includes cash, checking deposits, savings deposits, money market accounts, retail mutual funds, and time deposits of less than $100,000.

How is Global M2 Calculated

At Look Into Bitcoin, we also incorporate the Federal Reserve's Liabilities with other federal reserve banks and Overnight Reverse Repurchase Agreements. This provides a more effective measurement of the financial money supply versus only tracking M2 money supply.

Major Central Banks tracked for Global M2:

  • USA - Federal Reserve
  • China - People’s Bank of China
  • EU - European Central Bank
  • UK - Bank of England
  • Japan - Bank of Japan
  • Canada - Bank of Canada
  • Russia - Bank of Russia
  • Australia - Reserve Bank of Australia
What Does it Mean When Global Liquidity or Global M2 is Increasing

It means that major Central Banks are making more money available in the global financial system. This is achieved through either lowering interest rates or implementing quantitative easing. Quantitative easing involves buying up government bonds and other securities to increase the money supply.

You can track increases and decreases in Global Liquidity using the chart on this page.

Why is Global Liquidity Important for Bitcoin

More money in the global system can encourage spending on perceived ‘risk assets' such as Bitcoin. It is therefore extremely valuable for strategic investors to monitor changes in global liquidity over time in relation to Bitcoin price.

Historically, Bitcoin bull markets have coincided with the rapid expansion of global liquidity.

Some people view Bitcoin as a potential alternative to the existing Central Banking system. This is because Bitcoin has a predetermined monetary schedule. This is another reason people choose to monitor the price of Bitcoin alongside fluctuating global liquidity.

You May Also Be Interested In

Addresses with Balance > $10 screenshot
Addresses with Balance > $10

Live chart showing the number of unique addresses holding at least $10.

Miner Revenue (Fees vs Rewards) screenshot
Miner Revenue (Fees vs Rewards)

Percentage comparison of Bitcoin miner revenues earned from fees and mining rewards.

Bitcoin Lightning Capacity screenshot
Bitcoin Lightning Capacity

Cumulative capacity held by all nodes on the Lightning Network.

Make smarter decisions about Bitcoin. Instantly.

Access the Bitcoin and Global Macro Charts that really drive Bitcoin’s price.

+40 chart alerts. Never miss critical levels on charts again.

Analysis newsletter. Manage your emotions at market extremes.

Private Tradingview indicators. See Bitcoin chart levels in real time!

Cancel anytime.

Learn More

Any information on this site is not to be considered as financial advice. Please review the Disclaimer section for more information.