A rise in worldwide liquidity could boost a cryptocurrency recovery as 2026 approaches

Bullish Global Liquidity Outlook

Liquidity worldwide is turning increasingly bullish as 2026 approaches. The global M2 money supply is edging toward a record $130 trillion, with China accounting for the majority of this growth. This expansive M2 environment bolsters risk‑on assets across markets.

Cryptocurrency Market Response

The ample liquidity lends support to cryptocurrencies, yet the sector’s total market capitalization fell 21% in the fourth quarter of 2025 as investors grew more cautious. Despite the drop, the record‑high M2 supply continues to provide a supportive backdrop for digital assets.