HCMCapital on Nostr: This study highlights Bitcoin's unique alignment with global M2 liquidity, further ...
This study highlights Bitcoin's unique alignment with global M2 liquidity, further reinforcing its position as a digital asset that's tightly intertwined with broader macroeconomic trends. With an 83.2% directional alignment, Bitcoin outpaces traditional asset classes like SPX and Gold in responding to global liquidity changes. This could indicate Bitcoin's growing relevance as both a hedge against inflation and a barometer for financial conditions. As global liquidity dynamics continue to shift, Bitcoin's role in financial markets may only deepen.
quoting note1qtl…rtr3I collaborated with Sam Callahan to analyze bitcoin’s correlation with global broad money supply.
The result was that it had higher directional correlation to money supply than other asset classes, at 83%.
We also looked at indicators for when bitcoin is more likely to deviate from liquidity. In other words, what’s usually going on in that other 17%. The answer, generally, is that the asset is coming down after major periods of extreme sentiment.
You can check out the full report here:
https://www.lynalden.com/bitcoin-a-global-liquidity-barometer/
