Crypto
Bitcoin Price Eyes 21% Drop Despite Record US M2 Growth
US M2 money supply surged +$247.8 billion in May to a record $23.1 trillion, but it still failed to lift Bitcoin's price.
11d ago 4,280
BLOCKINSIDERLoadingUS M2 money supply surged +$247.8 billion in May to a record $23.1 trillion, but it still failed to lift Bitcoin's price.
Bitcoin price seems to be continuing its bearish trend, even after the US M2 money supply reached a record high in May 2026. Historically, it has been observed that whenever the money supply expanded, it typically boosted risky assets like crypto, but this time it isn’t working.
Recently, a well-followed crypto community shared a post on X, noting that the US M2 money supply surged by +$247.8 billion in May 2026, to a record high of $23.1 trillion. This marks the largest monthly surge in money supply since May 2021.
For context, this growing M2 money supply indicates the total money readily available for spending, investing, and lending in the economy.
In addition, the post on X further stated that year-to-date, M2 has soared by +$698.6 billion, the largest January to May increase in five years. The money supply now stands $1.3 trillion above the March 2022 peak. Meanwhile, since 2000, money in circulation has grown at an average annual rate of +6.30%.
Despite its persistent growth, Bitcoin price, alongside others, continues its decline during this period.
Today, July 1, 2026, Bitcoin (BTC) declined 1.05% over the past 24 hours and was trading at $58,620. Despite the falling price, the asset’s trading volume jumped 11% to $34.40 billion during the same period, indicating heightened participation from traders and investors. In fact, at the moment, it supports BTC’s bearish move.
Bitcoin price action continues to remain bleak even after a huge surge in US M2 supply.
The key factors behind this seem to be the escalating geopolitical tensions between the US, Iran, and Israel, alongside billions worth of outflows in US spot Bitcoin Exchange-Traded Funds (ETFs).
Analytics tool SoSoValue reveals that since June 17, 2026, US spot Bitcoin ETFs have been recording consecutive outflows. Meanwhile, the tool further discloses that Wall Street investors have since then moved a notable $2.418 billion from the ETFs, indicating fading interest from institutions.
However, the question remains unchanged: what next for Bitcoin price?
According to the TradingView daily chart, BTC’s short-term bias appears bearish, as it has lost control over a key support level of $60,500, a level that BTC has been holding since February 2026.
In addition, the asset has also broken down from a tight consolidation zone and, in fact, has closed a daily candle below the lower boundary at $59,100, a level BTC had been holding since June 26, 2026.
Following the breakdown of the support and the consolidation, BTC has now opened the door to a further fall. If the asset remains below the $59,100 level, it could see a further dip of 21% and may drop below $45,000 level.
However, this bearish thesis could be invalidated if the Bitcoin price sustains above the $60,0si00 level.
At press time, the Average Directional Index (ADX) had hit 37.71, indicating a strong trend, reinforcing the beatrish outlook. Additionally, enthe price below the 200-day Exponential Moving Average (EMA) shows a broader bearish trend and seller domination.
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