The U.S. money supply has hit a record high, reaching an unprecedented $22.12 trillion in July 2025 according to data released by the Federal Reserve. This significant increase in liquidity may influence both traditional and crypto markets. Experts link this trend with historical data showing correlations between rising M2 and increased interest in cryptocurrencies like Bitcoin and Ethereum. Arthur Hayes, former CEO of BitMEX, and Raoul Pal from Real Vision have previously discussed how large-scale money supply changes can impact asset classes like crypto. These figures often discuss the macroeconomic impact of monetary policy on markets, but haven’t yet issued statements regarding this particular milestone. Analysts anticipate increased cryptocurrency market activity, potentially driven by DeFi as a major investment avenue during periods of liquidity expansion. The Federal Reserve’s Economic Data provides detailed information about M2 money stock. Historical observations show that large M2 increases often coincide with increased interest in cryptocurrencies during times of economic uncertainty and investor demand for inflation-resistant assets. A similar trend occurred during the COVID-19 pandemic, where rising M2 coincided with a surge in Bitcoin and Ethereum prices. While there are no direct regulatory or funding initiatives linked to this current increase, the correlation between money supply growth and market activity remains consistent across various asset classes. Blockchain data suggests increased on-chain activities which indicates a potential shift towards decentralized finance (DeFi) as an investment option. However, official project roadmaps haven’t yet been released in response to this milestone. More detailed information about the impact of M2 money stock can be found in the Federal Reserve’s Economic Data and on-chain platforms like DeFiLlama provide insights into blockchain activities and related developments. The content on defiliban.com is for informational purposes only and should not be considered financial or investment advice. Cryptocurrency investments carry inherent risks, and it’s important to consult a qualified financial advisor before making any investment decisions.