Correlation between M2 money supply and DXY
GM brothers, I find this part quite interesting so I want to share it with everyone, let's see the correlation between M2 and DXY
1. History in Covid-19
You can see when the Covid pandemic occurred in March 2020. It started the "expensive money" phase -> keep money, keep life more than keep assets. This is normal when BlackSwan occurs.
Then, to implement policies to support the Pandemic, M2 money supply increased by 40%, nearly 6k billion USDT was created, pushing all products / goods to increase in price, leading to inflation in the past 2 years.
â> You can understand that DXY is a tool for us to predict the upcoming development of M2 money supply
2. Currently
DXY has clearly entered the phase and broken the growth price channel. It will enter a strong downtrend in the near future. So we can expect M2 to continue to go out of phase and enter a strong upward trajectory.
When M2 increases, everything increases, $BTC && Crypto is certainly no exception.
Let's wait and see how the presidential election will go in November this year
