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What is the definition of M2 in the context of cryptocurrencies?

avatarSargent EllisonNov 26, 2021 · 3 years ago3 answers

Can you explain the meaning of M2 in relation to cryptocurrencies? How does it impact the crypto market and what factors are included in M2?

What is the definition of M2 in the context of cryptocurrencies?

3 answers

  • avatarNov 26, 2021 · 3 years ago
    M2, in the context of cryptocurrencies, refers to the measure of money supply that includes physical currency, demand deposits, and certain types of savings deposits. It is an important indicator of the overall liquidity in the crypto market. The inclusion of M2 in the analysis helps to understand the availability of funds for investment and trading activities. Factors included in M2 are cash, checking accounts, savings accounts, and money market accounts. By monitoring M2, investors and traders can gain insights into the potential impact on the crypto market.
  • avatarNov 26, 2021 · 3 years ago
    M2 in the context of cryptocurrencies is a term used to describe the broad money supply that includes physical cash, checking accounts, savings accounts, and other highly liquid assets. It represents the total amount of money available for transactions and investments in the crypto market. Monitoring M2 can provide valuable information about the liquidity and potential growth of the market. It is an important metric for investors and traders to consider when making decisions.
  • avatarNov 26, 2021 · 3 years ago
    M2, also known as the broad money supply, is a measure used in the context of cryptocurrencies to assess the overall availability of funds in the market. It includes physical currency, demand deposits, and certain types of savings deposits. Monitoring M2 can help investors and traders gauge the potential impact on the crypto market. By analyzing the factors included in M2, such as cash and various types of accounts, market participants can make informed decisions based on the liquidity and potential growth of the market.