Bitcoin Is a Global Liquidity Barometer

🔍 Lyn Alden’s research found that Bitcoin moves 83% with the global money supply (M2). This shows that when liquidity expands, Bitcoin’s price increases and when it contracts, it decreases.

📊 The study, conducted between 2013 and 2024, highlights Bitcoin’s high correlation (0.94) with global liquidity, making it a valuable macroeconomic barometer for investors.

The M2 money supply began to contract in March 2022 and started to increase again in March 2024. This could be a positive sign for Bitcoin prices.