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Global liquidity indicators rose into year-end 2025, while crypto trading activity cooled overall. According to market trackers, Global M2 levels hover near $130 trillion. Exchanges also reported a sharp decline in spot trading volume, which shaped the risk-asset setup heading into 2026.
Alphractal data showed Global M2 Supply approaching $130 trillion, which set a new all-time high. Macro traders often monitor Global M2 because it reflects money growth across major economies.
The expansion did not spread evenly across regions. Alphractal estimated China’s M2 at about $47.7 trillion or 37% of the total. It also highlighted M2 contraction in Japan, India, Argentina, Israel and South Korea, which pointed to mixed liquidity conditions.
Reports also noted signs of policy competition on liquidity provision. Analysts cited a US Treasury plan worth $40 billion, alongside easing moves elsewhere. The combination kept global liquidity trending higher, even as some countries tightened.
The US backdrop included three rate cuts in the second half of 2025, which signaled an easing cycle. Commentators linked the Treasury plan to bank cash support through new debt issuance. They said it can keep funding markets stable.
Even with those tailwinds, crypto prices did not move higher in step. TradingView’s TOTAL crypto market cap index showed a 21% quarterly decline into late 2025. The index also stayed well below late-Q3 levels, which kept risk appetite restrained.
Market watchers also pointed to softer demand signals in regulated products during parts of the quarter. Some reports cited slower ETF inflows and cautious positioning before the final Federal Open Market Committee meeting. After the Fed delivered a widely expected 25-basis-point cut, traders quickly shifted focus back to growth and inflation data.
Bitfinex said crypto spot activity fell 66% from January’s peak, and it compared the slowdown to prior cycle lulls. CoinMarketCap data showed 30-day spot volume sliding from above $500 billion in early November to about $250 billion this week.
Volume struggled to hold the $300 billion to $350 billion range through late November and early December. Several sessions drifted toward $200 billion after a mid-November spike above $550 billion, based on CoinMarketCap figures. The pattern suggested fewer traders chased short-term moves.
Bitcoin also traded in a tighter range during the volume decline. Analyst Michaël van de Poppe highlighted levels near $89,000 and $92,000 and said a break could increase volatility.
Also Read: How Dogecoin Price Trend Mirrors M2 Global Money Supply: A Path to $1 and Massive Market Value
