Liquidity and BTC: Symbiotic Relationship

13 באוק׳

It is well-known that BTC is a child of liquidity, but I'm not sure how if people realize how much when liquidity is measured at Global Money Supply - USD adjusted (indicator by SirChub). The last two cycles and the current one are plotted. As you can tell, the relationship is strong. In recent years, rapid liquidity increases have lead increases in the BTC price. Will do a separate post, but what is interesting is that this cycle, is that increases in price has lagged liquidity by around 72 days. I'll hope to come up with a simple indicator to capture this soon, but you can use SirChub's indicator in the meantime.

Cheers.