How Big Is the Money Supply? M2: Money Supply, Explained in 6 Minutes 30 Seconds

*How much money is there in the economy, exactly?* In the U.S., we have a value called M2 — and it’s one of the simplest ways to see how much money is really moving through the system. When M2 money supply surges, risk assets often follow — when it tightens, markets cool. In this video, Jessica Walker explains what M2 is, what it includes, how it changes, and why tracking M2 is one of the simplest ways to understand where the economy and crypto might be headed next. We break down M2’s components (from cash and checking to savings, time deposits, and money market funds), the forces that expand or contract it (central banks, government spending, bank lending, and behavior), and how M2 ties to inflation, liquidity, and crypto cycles. You’ll also see real-world case studies — from the pandemic’s record ~27% YoY M2 spike to the 2022–2023 contraction — and how those shifts aligned with bull and bear markets. *📚 Resources:* ➡️ What Is M2 and How Does It Relate to Markets? https://www.binance.com/en/academy/articles/what-is-m2-and-how-it-relates-to-markets In this video, you’ll learn: ✅ What M2 actually includes: M1 (cash + checking), savings accounts, time deposits (CDs), and money market funds ✅ How M2 moves: Why expansions boost spending/investing and contractions signal risk‑off behavior ✅ Key drivers of M2: Central bank rates/reserves, fiscal stimulus/taxes, bank lending, and consumer/business sentiment ✅ M2 and inflation: Too much money chasing too few goods — and how that impacts crypto, stocks, bonds, and housing ✅ Crypto links with M2: Why major Bitcoin rallies often align with high M2 growth, and bear phases with M2 slowdowns ✅ Case studies: COVID stimulus and ~27% YoY M2 surge; 2022 tightening and the first M2 contraction in decades ✅ Practical takeaway: Watch M2 to gauge liquidity, risk appetite, and potential macro tailwinds/headwinds for crypto ⏱️ Timestamps: ⏳ 00:00 – Why M2 matters for the economy and crypto ⏳ 00:34 – What is M2? Explaining Money Supply: How much money is in the system? ⏳ 01:04 – Components of M2: M1 (cash/checking), savings, time deposits, money market funds ⏳ 02:01 – How M2 works: Expansion vs. contraction and what it signals ⏳ 02:34 – What drives M2: central banks, government spending, bank lending, consumer behaviours ⏳ 03:35 – Why does M2 matter for crypto? M2 and inflation + risk ⏳ 04:34 – Case studies of M2 and inflation: COVID stimulus and 2022 tightening ⏳ 05:13 – Why M2 is a powerful macro indicator for crypto investors ⏳ 06:17 – Outro #m2 #money #cryptoinvesting #binance #cryptoexplained #binanceexplains *⚠️ RISK WARNING:* Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance is not liable for any losses you may incur. It is your responsibility to ascertain whether you are permitted to use the services of Binance based on your individual circumstances. Not financial advice. For more information, see our Terms of Use and Risk Warning. *📢 Join the conversation:* ➡️ Twitter/X: https://twitter.com/binance ➡️ Instagram: https://www.instagram.com/binance ➡️ Facebook: https://www.facebook.com/binance ➡️ TikTok: https://www.tiktok.com/@binance ➡️ LinkedIn: https://www.din.com/company/binance ➡️ Reddit: https://www.reddit.com/r/binance *🔗 Download Binance here (iOS, Android):* https://binance.onelink.me/y874/cb98de36 *🔗 Sign up for Binance here:* https://www.binance.com/en?ref=ERQKP7ND&utm_source=BinanceYoutube&utm_medium=GlobalSocial&utm_campaign=GlobalSocial