$2.5T crypto market meets global liquidity surge – This convergence will lead to…

Global liquidity expansion — highlighted by a record $15 billion Treasury buyback and an all-time high in global M2 — is creating a structurally bullish backdrop for crypto by increasing system-wide and on-chain liquidity (stablecoin supply at $320 billion). Total crypto market cap has rallied for three straight weeks and is currently around $2.5T, up over 6.5% this week, supporting renewed interest in Layer 1s. However, a widening divergence between Bitcoin and the S&P 500 (SPX making fresh highs) and the fact that major crypto assets remain materially below their peaks (BTC ~40% down, ETH ~52% down) introduce caution: liquidity may be boosting equities more than crypto, risking further underperformance for Bitcoin in the near term. Overall, the piece frames liquidity as a bullish structural force for crypto while warning that capital rotation toward equities could limit the strength of this cycle.