GlossaryM2 money supply
M2 money supply
M2 is the broad money supply of the USA, shown in the “M2 (USA)” pane in trillions of US dollars. Traders use it as a rough measure of how much money is in the system and whether it is growing or shrinking.
How to read it
- A growing money supply is seen as a tailwind for scarce assets like Bitcoin: more money meets a fixed supply.
- In nominal terms, M2 almost always rises. The pace tells you more: is growth accelerating, or is the money supply even shrinking, as in 2022 and 2023?
- The effect on prices usually comes with a delay. That is why the study “mantacharts: M2 Overlay (US M2, 90-day lead)” shifts the series forward, and “mantacharts: M2 Delta (US M2)” measures how far the price runs ahead of the money supply.
Good to know
- The pane shows the USA only. “mantacharts: Global Liquidity” shows the combined balance sheets of several major central banks.
- A monthly value sits as a step across the whole month. So on an hourly chart, the line is flat for weeks.
- A value counts as current for 95 days. If the latest one is older, the line ends and the pane header shows “M2 (USA) · as of {date}”.
- The pane works on every symbol. The only settings are in the Style tab: Appearance (default: line).