All major currencies’ M2 have reached record highs… Yet Bitcoin is struggling—why?? To understand why, we first need to know what M2 actually is. M2 is a broad monetary aggregate published by central banks, representing the total amount of money in circulation or easily convertible to cash. The U.S. Federal Reserve defines it precisely as follows: ✅ M1 = Currency in circulation + Demand deposits + Other liquid deposits ✅ M2 = M1 + Small-denomination time deposits + Retail money market funds So why, despite rising M2, are Bitcoin and crypto struggling unlike in past cycles? In previous cycles, global liquidity expansion—especially growth in M2—showed a strong correlation with Bitcoin price movements. When central banks inject liquidity, some of it flows into riskier or scarce assets, and Bitcoin, with its fixed supply, historically responded strongly. In crypto markets, this effect typically manifests with a lag of about 10 to 12 weeks. But the primary reason I see is this: even though M2 numbers are rising, actual liquidity flowing into risk assets is constrained—due to high real interest rates, a strong dollar, and low velocity of money. Secondly, even this limited liquidity is being channeled toward the AI investment boom—flowing into semiconductors, AI hardware, and large-cap tech stocks on Nasdaq. In short, the same indicators don’t always produce the same outcomes— There are simply too many factors determining market prices! But there’s still plenty to be optimistic about. After all, Ethereum is actively transforming and being adopted in the real world… So I believe it’s highly likely that liquidity will eventually flow toward it again. Fundamentals matter most! Until the Flippening! 🔥 ETH > BTC @ethereumfndn @ethlabs_org @ethereuminsti $ETH $BMNR #Flippening #LeanEthereum