The global M1 Money Supply reached a historic high of $45 trillion, with China leading the global Liquidity expansion.

Source: BlockMedia Original Title: “Is the global liquidity party resuming?”… Global M1 at $45 trillion 'all-time high' Original Link: https://www.blockmedia.co.kr/archives/1023042

Global Protocol Currency (M1) Supply Surpasses Historical High

The global protocol currency (M1) supply has surpassed a historic record of 45 trillion dollars, with global liquidity rapidly expanding. In particular, China has become a major force driving the growth of global liquidity.

According to a report by macroeconomic analysis media The Kobeissi Letter citing Bloomberg data, the global money supply has lost control, with the current global M1 money supply reaching an unprecedented record of $45 trillion.

The core driving force behind China's promotion of global liquidity expansion.

The key driver of this liquidity explosion is China. According to data, China's M1 money supply has reached $16.5 trillion, a record high. This figure accounts for about 37% of the global M1 total, indicating that China is currently printing the most money worldwide. M1 money supply ( refers to the total of cash held by the public and demand deposits that can be converted into cash at any time, such as checking accounts and regular accounts ), and is the most direct indicator of market liquidity.

( The US accounts for only 18%, while global liquidity expansion accelerates.

The M1 money supply in the United States of ) does not include savings deposits and is approximately $8 trillion, accounting for about 18% of the global total, which is only half of that of China.

The Kobeissi Letter states, “China has driven much of the global money supply growth this year,” and that “global liquidity is expanding rapidly.” From the chart, the surge in money supply after the pandemic in 2020 had briefly stalled, but has recently shown a steep upward curve again.

The impact on the Bitcoin and other risk assets market.

Market experts are paying attention to the impact of expanding liquidity supply on asset markets. Generally, an increase in M1 means that there is ample liquidity available for immediate deployment in the market, which has a strong positive effect on stocks, real estate, and the digital asset market, including Bitcoin ( BTC ).

Against the backdrop of Bitcoin's recent consolidation and search for new breakthroughs, the liquidity supply from China and the increase in global currency volume may become key drivers for the digital asset market.

However, excessive money supply may once again stimulate inflationary pressures, potentially leading to confusion in the interest rate policies of central banks, which has also raised related concerns.