đ Is Bitcoin a Liquidity Barometer? đ€
According to Lyn Aldenâs research, Bitcoinâs price moves in the same direction as global liquidity (M2 money supply) 83% of the time. In other words, when the money supply increases, Bitcoin also rises, and when it decreases, it falls. đž
- ââThe research revealed that Bitcoin has a high correlation of 0.94% with global liquidity.
- This makes Bitcoin a valuable macroeconomic barometer for investors.
- M2 money supply started to increase in March 2024, which is a positive sign for Bitcoin.
How do you think Bitcoin will perform this year? Letâs meet in the comments! đ