When there’s more money sloshing around—Bitcoin goes up too. But since mid-2025, M2 jumped about 12%. Meanwhile, Bitcoin tanked about 35%. That’s not just a blip. That’s a real break from the idea that more liquidity means higher crypto prices.
What’s messing things up? Two reasons. First, interest rates are high, making people less willing to take risks. Second, energy prices shot up, so miners are getting squeezed. Both hit at once, and now the liquidity play looks busted.
