Why is it important to monitor the M2 money supply chart when investing in digital assets?

1 answers

• Dec 18, 2021 · 3 years ago
  At BYDFi, we understand the importance of monitoring the M2 money supply chart when investing in digital assets. Changes in the M2 money supply can have a significant impact on the overall market conditions and asset prices. By keeping a close eye on the M2 money supply, investors can identify potential opportunities and risks in the market. For example, if the M2 money supply is expanding rapidly, it may indicate that there is excess liquidity in the market, which could lead to higher asset prices. Conversely, a contraction in the M2 money supply may suggest a tightening of liquidity, which could lead to a decrease in asset prices. By monitoring the M2 money supply chart, investors can make more informed decisions and optimize their investment strategies for better returns.
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