The M2 money supply has risen to a record $21.86 trillion, which has investors hopeful that Bitcoin (BTC) may soon follow suit.
This spike occurs when the economy is under increasing strain, with rising inflationary concerns endangering financial stability, the national debt growing, and government spending skyrocketing.
How the record $21.86 trillion M2 money supply could impact Bitcoin
For background, the total amount of money in circulation within the economy is measured by the M2 money supply. Mutual funds, savings accounts, time deposits, and M1 (cash and checking deposits) are all included.
The most recent data from Barchart indicates that the metric has reached its highest point ever, $21.86 trillion.
M2 Money Supply hits new all-time high of $21.86 Trillion 🚨 pic.twitter.com/YoFxMlRqjY
— Barchart (@Barchart) June 3, 2025
The latest spike is consistent with the US’s wider economic difficulties. Tech Lead, a pseudonymous expert, lately posted his observations on X (previously Twitter). He emphasized that the US debt-to-GDP ratio had risen to heights never seen before.
Today, net interest payments make over 20% of federal revenue, which puts a heavy burden on the budget. The expert also noted that government spending is still higher than receipts.
US debt in 4 charts…
– Debt to GDP at all-time highs.
– Net interest soars to 20% of revenue.
– Spending exceeds revenue, no path to profitability.
– M2 money supply surging to all-time highs.Money printer is on. pic.twitter.com/T284Bzyjq9
— TechLead (@techleadhd) June 4, 2025
However, given this information, analysts are growing more hopeful about Bitcoin’s future. Historical patterns demonstrating a robust relationship between M2 expansion and Bitcoin’s price provide credence to their theory.
“On average, M2 Global Money Supply tends to lead BTC price by around 12 weeks. Recently, M2 hit a new all-time high of $21.86 trillion. That strongly suggests BTC may follow suit in the coming months,” Weiss Crypto stated.
The sentiment was confirmed by the Analyst Tech Lead.
“There’s a lot of mixed signals, but the only one that really matters is liquidity. Follow the money,” he said.
But why does M2 cause Bitcoin to rise? The value of fiat currencies may decline as M2 grows, which would encourage investors to turn to Bitcoin as a store of value. Additionally, increased market liquidity promotes speculation.
Additionally, lower interest rates reduce the appeal of traditional assets, which raises demand for Bitcoin and drives up its price.
When you follow Global M2 money supply you realize everything else is just noise. pic.twitter.com/OerS75mySu
— James Wynn (@JamesWynnReal) June 4, 2025
In addition to these elements, Fred Krueger, a mathematician and analyst, emphasized Bitcoin’s potential in these market circumstances. He pointed out that both the US debt and the global money supply have been increasing at a steady 8% annual rate since 2000.
The analyst emphasized, however, that Bitcoin is a unique asset that not only holds its value but also expands at a significantly faster rate, making it a desirable substitute.
“Basically, we have a ‘leaky bucket’ that loses 8% of its value a year. Stocks almost make up for it. Not after taxes. Housing does not make up for it. At all. Bitcoin doesn’t leak and is growing 40% per year,” Krueger posted.
These elements support a bullish outlook for the biggest cryptocurrency, which has experienced a decline following its May 22 peak of $111,917.
Q1 2025 data reveal sky-high costs and a new pecking order in Bitcoin mining
Due to the halving event and the increasing network difficulty, the Bitcoin mining business encountered many difficulties in Q1 2025.
Data from publicly traded Bitcoin mining firms, including Cipher Mining, Riot Platforms, Core Scientific, Hut 8 Corp, TeraWulf, Bitfarms, and Cango, will be used in this analysis to compile, contrast, and assess their development plans, mining output, and financial success.
Financial performance
There were notable differences in the financial performance of bitcoin mining companies in the first quarter of 2025.
With an output of 1,530 BTC, Riot Platforms made the most money, $161.4 million, mostly from mining Bitcoin ($142.9 million). However, because to the impact of the halving and increasing network difficulty, per-unit mining costs increased from $23,034/BTC to $43,808/BTC year over year.
Due in significant part to non-cash valuation adjustments ($622 million), Core Scientific recorded an excellent net profit of $581 million. Adjusted EBITDA was negative at $6.107 million, and revenue fell 55.7% to $79.525 million.
Although Bitfarms’ sales increased by 33% to $67 million, the company’s gross profit margin dropped from 63% to 43%, resulting in a $36 million loss. With $144.2 million from Bitcoin mining, Cango generated 1,541 BTC at a high average cost of $70,602/BTC, contributing to its $145.2 million in income.
Hut 8 Corp. and TeraWulf, on the other hand, encountered severe difficulties; their revenues fell by 58% ($21.8 million) and $34.4 million, respectively, and they incurred large net losses ($134.3 million and $61.4 million).
Mining output and Bitcoin holdings
Cango dominated the mining production with 1,541 BTC, followed by Bitfarms (1,166 BTC) and Riot Platforms (1,530 BTC). After mining 174 bitcoin in April, Cipher Mining sold 350 bitcoin, bringing its total assets down to 855 bitcoin, of which 379 bitcoin were collateralized.
With 19,223 unrestricted Bitcoin, Riot Platforms has the greatest reserve, followed by Bitfarms with 1,166, and Cango with $347.4 million in cash and short-term investments.
Core Scientific concentrated on growing managed services with a 250MW contract for CoreWeave, which is anticipated to bring in $360 million by 2026, but did not reveal specific Bitcoin holdings.
Because to the halving of Bitcoin and the increased network difficulty, Q1 2025 was difficult for Bitcoin mining operations. High mining costs presented difficulties, although Riot Platforms and Cango dominated in output and revenue. To lessen their dependency on mining, Core Scientific and Hut 8 are shifting their focus to industries like artificial intelligence.
Can Dogecoin price bounce from high confluence zone as whales buy 280M DOGE?
As support signals converge, the price of Dogecoin approaches a high confluence zone. Will the price drop below $0.25 as whales accumulate 280M DOGE?
Following a 16% decline over the last seven days, Dogecoin (DOGE) is still under negative pressure. But because of this sharp drop, the price of Dogecoin has moved into a high confluence zone with strong support that can help it recover. Whales are accumulating this dip in the meantime, having scooped 280M DOGE in a single day.
As of today, June 5, the price of Dogecoin is down 4% intraday at $0.189. Given that the price of Bitcoin has once again fallen below $105,000, DOGE is probably keeping an eye on it.
Dogecoin price set to bounce from high confluence zone
The price of Dogecoin has moved into a high confluence zone between 0.177 and 0.182, where it could find support and rebound if whale accumulation and retail both increase. The confluence of several technical structures indicates that this zone is a critical support for this leading meme coin.
The falling wedge pattern, which has been active for about three weeks, is the first technical structure. According to the chart below, the confluence zone corresponds to the pattern’s lower trendline. If the price of DOGE can rise from this point, it will validate the bullish reversal, which is frequently represented by a falling wedge.
Second, the 161.8% Fibonacci level, which frequently denotes a strong support, falls within this zone. Dogecoin will back the subsequent bullish leg to the first resistance at $0.20 before the run-up to $0.25 takes place if it can successfully defend this support.
The RSI must return above 50 in order for the price of Dogecoin to demonstrate a significant recovery from this zone; at the time of writing, the measure was at 39. This bullish perspective may be confirmed if it climbs and crosses over 50, which would indicate that the momentum has shifted to the bullish side.
But before such a rally starts, Dogecoin needs to overcome a number of obstacles. A bearish flag pattern seen in a recent investigation is one example of this. According to the pattern, Dogecoin can plummet to $0.165 before rising again.
Whales scoop 280M DOGE tokens
Dogecoin whales have been quickly amassing the meme token amid the current price decline, according to data from Santiment. The addresses that contain between 10 million and 100 million DOGE tokens demonstrate the slow accumulation.
The total DOGE holdings for these addresses have risen from 24.19 billion to 24.47 billion over the past day. This indicates that 280 million tokens, or roughly $50.4 million at the current Dogecoin price, have been bought by the addresses.
After accumulating gradually over the past month, these addresses now possess the most DOGE tokens since mid-March, as the accompanying data illustrates. Such significant whale buildup typically indicates a potential short-term recovery in a token’s price.
Given that Dogecoin’s price has entered a high confluence zone, it is probable that it will soon rebound and perhaps hit $0.25. Whale holdings, meanwhile, have increased to their highest point since the middle of March. To make a significant upward bounce, Dogecoin must, however, overcome the persistent pessimism.
