The increase in value of NASDAQ is breaking records, with a market capitalization in relation to the M2 monetary offer of the USA. UU. Which has reached a record of 176%. Global Market Commentator The Kobeissi Charter summed it up in three words:
“This is crazy.”
NASDAQ ‘Loca’ Market Capitalization
As of August 2025, the Nasdaq market capitalization breaks the anterior bubble peak dot-com in approximately 45 percentage points. Simultaneously, the proportion of the Nasdaq market limit for the US GDP. It has reached a historical 129%, almost twice the maximum of March 2000. These levels are raising the eyebrows and alarm on Wall Street.
The M2 money supply covers all the cash, verifying deposits and easily accessible savings, essentially, “liquid” funds in the United States financial system. When the total value of the Nasdaq eclipsa this group, it means that the gallopan market assessments very much in front of the base layer of money that supports the economy.
In previous cycles, the manifestations of the stock market were ultimately anchored by available liquidity. Overcoming the M2 money supply by such a broad margin illustrates an unprecedented disconnection between financial markets and real world cash or credit growth.
Comparisons with the Dot-Com bubble are suitable: in 2000, the nasdaq meteoric gains ended with a collapse when excess speculation far exceeded the money supply and economic foundations. However, today’s proportions are beyond those previous tops, fueling the fears of an even larger asset bubble.
Implications: What could happen next?
When the assessments of the shares become without the growth of the underlying money growth, the markets are more susceptible to acute and painful corrections. As the story showed after the Dot-Com peak, the feeling can rotate quickly, and the posterior waterfall can erase billions in the market value during the night.
The increase in today is very concentrated in a handful of giant technology companies, especially those that lead the innovation of AI. This means that a recession in just a few names could spill throughout the market, intensifying volatility.
With the values of the actions so far higher than the levels of liquid cash, any change in the risk appetite, the interest rates or a loan adjustment could exhaust the liquidity of the shares quickly. Such mismatches increase the systemic risk, as market participants fight for cash in a sudden recession.
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Central banks can be pressed to inject more liquidity or risk that trigger deep correction. However, with m2 already at record levels and inflation concerns even present, the policy options are limited.
Broader implications for Bitcoin and Crypto
Acute correction in technological actions often causes a non -correlated assets. Bitcoin, with its fixed supply and its decentralized nature, is often seen as a coverage of “digital gold” both against capital bubbles and on the stress of the financial system. After large capital clashes in the past, Bitcoin and Gold have often seen tickets as alternative value stores.
However, cryptography is not immune to clashes throughout the market. During the COVID accident and after the fall of the-COM points, investors also sold Bitcoin and other risk assets in the initial panic wave. The liquidity of the thin cryptography market can amplify these sudden changes.
If a market crisis forces funds and institutions to raise cash, there could be short -term sales pressure for bitcoin and cryptography, especially given recent entries and speculative positions in ETFs. However, each important crisis tends to inspire a renewed interest in alternative and active financial systems in the recovery phase.
As Nasdaq exceeds the real economy, regulators are observing imbalances. Both values and cryptography market rules could be adjusted in response to market volatility or perceived excess.
Never before the market value of the best technological actions in the United States so dramatically exceeded both the money supply and the size of the economy itself. Investors must proceed with caution and remember the lessons of past bubbles.