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Weakening dollar and M2 influx set stage for possible Bitcoin surge in H2

The United States has reached a new milestone in money circulation, with the M2 money supply climbing to an all-time high.

M2, a key measure that includes cash, checking accounts, savings, and money market deposits, hit $21.94 trillion by the end of May. Year over year, M2 has grown by 4.5%.

US M2 MoneyUS M2 Money Chart (Source: X/The Kobeissi Letter)

According to analysts from The Kobeissi Letter, this marks the 19th consecutive monthly increase and surpasses the previous peak of $21.86 trillion recorded in March 2022.

Even more telling is the inflation-adjusted M2, which rose 2.1% over the same period. This marks the most significant inflation-adjusted increase in over two years. Since 2020, the US money supply has surged by nearly $7 trillion, representing an increase of roughly 45%.

Meanwhile, the sharp rise in liquidity comes at a time of historic weakness for the US dollar. The Kobeissi Letter notes that the Dollar Index dropped by 10.8% during the first half of 2025.

US Dollar IndexUS Dollar Index Chart (Source: X/The Kobeissi Letter)

This represents the worst H1 performance since the collapse of the Bretton Woods system in 1973 and the weakest six-month stretch since 2009.

Analysts say this continuous decline reflects the dollar’s eroding purchasing power and signals long-term structural issues.

What does this mean for Bitcoin?

For the crypto market, especially Bitcoin, this environment could prove pivotal in attracting more capital to the industry.

The rising M2 level is often bullish for the top crypto because it indicates abundant liquidity in the system. That liquidity often finds its way into higher-risk assets, like Bitcoin, when traditional stores of value begin to falter.

While it remains uncertain whether this momentum will spur a continued Bitcoin rally, many investors believe the conditions favor the bellwether digital asset.

Prior to Bitcoin’s recent sideways movements, analysts on Crypto Twitter were sharing screenshots of the M2 supply rise in 2025 (lagged by 90 days) alongside Bitcoin charts almost daily. However, while M2 has continued on its upward trajectory, Bitcoin has stalled recently.

Bitcoin could benefit from a renewed wave of capital seeking returns beyond fiat currencies if the trend realigns.

The post Weakening dollar and M2 influx set stage for possible Bitcoin surge in H2 appeared first on CryptoSlate.

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    "In the crypto world, this is great news I want to share. Last year, I fell victim to a scam disguised as a safe investment option. I have invested in crypto trading platforms for about 10yrs thinking I was ensuring myself a retirement income, only to find that all my assets were either frozen, I believed my assets were secure — until I discovered that my BTC funds had been frozen and withdrawals were impossible. It was a devastating moment when I realized I had been scammed, and I thought my Bitcoin was gone forever, Everything changed when a close friend recommended the Capital Crypto Recover Service. Their professionalism, expertise, and dedication enabled me to recover my lost Bitcoin funds back — more than €560.000 DEM to my BTC wallet. What once felt impossible became a reality thanks to their support. If you have lost Bitcoin through scams, hacking, failed withdrawals, or similar challenges, don’t lose hope. I strongly recommend Capital Crypto Recover Service to anyone seeking a reliable and effective solution for recovering any wallet assets. They have a proven track record of successful reputation in recovering lost password assets for their clients and can help you navigate the process of recovering your funds. Don’t let scammers get away with your hard-earned money – contact Email: [email protected] Phone CALL/Text Number: +1 (336) 390-6684 Contact: [email protected] Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

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