Recent analyses by Matt Crosby reveal a strong correlation, exceeding 84%, between Bitcoin’s price and global M2 money supply. This relationship indicates that as liquidity increases globally, Bitcoin tends to surge in price, albeit approximately 56-60 days later. After a rebound from a low of $75,000 to above $85,000, Crosby's insights validate these trends, suggesting a clear macroeconomic context influencing Bitcoin's value. Understanding the two-month incubation period for liquidity impacts is essential for predicting Bitcoin trends going forward.
The correlation between Bitcoin price and global M2 liquidity often exceeds 84%, showcasing that increased liquidity typically leads to price increases with a 56-60 day delay.
Crosby emphasizes that there is an incubation period of about two months during which liquidity filters through the financial system before affecting Bitcoin prices.
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