Bitcoin's price moves in the same direction as global liquidity a remarkable 83% of the time over 12-month periods, indicating its role as a liquidity barometer.
The report quantified a very strong 0.94 overall correlation between Bitcoin and global M2 money supply from May 2013 to July 2024, confirming Bitcoin as a unique asset class.
With liquidity at unprecedented levels, Bitcoin might be on the verge of a massive bull run, echoing historical patterns where monetary expansion influences its price.
Despite temporary decouplings from market events, Bitcoin's long-term correlation with liquidity trends indicates its significance as a monetary 'canary in the coal mine'.
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