Why Liquidity Matters More Than Ever For Bitcoin

Global liquidity has long been one of the cornerstone indicators used to assess macroeconomic conditions, and particularly when forecasting Bitcoin’s price trajectory. As liquidity increases, so does the capital available to flow into risk-on assets, such as Bitcoin. However, in this evolving market landscape, a more responsive and perhaps even more accurate metric has emerged, one that not only correlates highly with BTC price action but is also specific to the ecosystem.

Global M2

Let’s begin with the Global M2 vs BTC chart. This has been one of the most shared and analyzed charts on Bitcoin Magazine Pro throughout the current bull cycle, and for good reason. The M2 supply…

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