Japan's monetary expansion is showing further signs of deceleration. December data reveals M2 money supply grew just 1.7% year-over-year, down from 1.8% in the previous period, while M3 ticked down to 1.1% from 1.2%. The slowdown reflects persistent deflationary pressures in Asia's second-largest economy. For crypto traders tracking macro conditions, this matters—monetary tightening cycles and sluggish liquidity growth often reshape risk appetite in digital asset markets. When central banks dial back stimulus, capital flows tend to shift. Japan's cooling money supply adds another layer to the broader global monetary backdrop that's been reshaping how traders position themselves across Bitcoin, altcoins, and DeFi protocols.