Why are there so many reasons for the decline?! It's actually just a lack of liquidity!

In March 2020, BTC's market capitalization accounted for only 0.91% of the US M2, and the total cryptocurrency market capitalization accounted for only 1.4% of the US M2.

In May 2021, BTC's market capitalization accounted for 3.92% of the US M2, and the total cryptocurrency market capitalization accounted for 10.38% of the US M2.

By October 2025, BTC's market capitalization accounted for 10.16% of the US M2, and the total cryptocurrency market capitalization accounted for 17.27% of the US M2.

At this time, cryptocurrency is extremely dependent on and sensitive to macro liquidity! So when Trump mentioned a 100% tariff on October 10, it caused a collapse in crypto.

Even the strong US stock market, in October 2025, the ratio of total US stock market capitalization to M2 reached a peak, close to the peak in 2000, and there was a decline in November.

Since the annual growth rate of M2 is the market's intuitive perception of liquidity, the correlation between cryptocurrency and the annual growth rate of M2 is stronger.

Moreover, the annual growth rate of M2 in 2025 is generally at a historically low level, and in October 2025, the growth rate of the annual growth rate of M2 is close to zero, with a decrease starting in November.