China's M2 Money Supply Hits All-Time High of $326 Trillion, Could Boost Bitcoin Price to $90k

In the midst of Trump Chain tariff war, China's money supply has just hit a record high of $326 trillion.

In the midst of Trump Chain tariff war, China’s money supply has just hit a record high of $326 trillion. This is the highest it has ever been, and it’s a huge increase from last year.

Money M2 is a measure of a country’s total money supply. It includes cash, savings, and easily accessible deposits. When M2 rises, it usually means the government is pumping more liquidity into the system, which can make borrowing easier and spending or investing more active.

This time, new data from China showed that the country’s M2 money supply reached an all-time high in April.

According to the People’s Bank of China (PBOC) data, China’s M2 money supply in April rose by 12.7% year-on-year to $326 trillion, exceeding expectations of 11.9% and March’s reading of 11.3%. This was the highest reading since January 2023.

The reading also showed that China’s outstanding yuan loans to the private sector unexpectedly fell by 0.9% month-on-month in April. Economists had anticipated a rise of 0.5% compared to March’s reading of 0.4%.

Experts Explain How Liquidity Could Affect Bitcoin Price

According to Brickken analyst Enmanuel Cardozo D’Armas, if China’s M2 money supply continues to grow, Bitcoin might soon test the $90,000 mark. As of now, Bitcoin is trading around $85,000, reflecting a rise of 0.5% in the last 24 hours.

suggesting that, “ China money printers are back on. Risk assets are about to go parabolic.”

In simpler words, when there’s more money in the system, prices of riskier investments like crypto might start shooting up.

According to Aksel Kibar, a market expert and Chartered Market Technician (CMT), it’s very important for Bitcoin to stay above its year-long average price to keep its upward trend strong.

He explained that if Bitcoin drops below this average, it could indicate a stronger bearish bias. But if it manages to stay above it and manages to break through the $90,000 level, then the price could start moving toward the next big goal, which is $100k.

However, despite the promising outlook, analysts highlight that there are still several uncertainties that could affect the crypto market.

suggest that a possible interest rate cut in the U.S. during May or June could help push crypto higher.

But on the other hand, negative factors such as stricter regulations or rising trade tensions could hold things back.

Moreover, the upcoming end of Trump’s 90-day tariff pause will likely bring massive volatility to the market.