Bitcoin’s price movements demonstrate a significant correlation with M2 Global Liquidity trends, indicating macroeconomic liquidity flows are crucial to BTC’s momentum. Market analysts underscore the near-perfect alignment between Bitcoin’s price structure and M2 liquidity expansion, particularly evident when M2 breaches critical thresholds like 110,000 and 120,000.
Fluctuations in M2 Global Liquidity between August and June correspond to bullish BTC surges, reflecting Bitcoin’s responsiveness to monetary expansion cycles. This relationship has shifted analytical focus toward global liquidity conditions as a primary determinant of Bitcoin’s mid-term trajectory, moving beyond short-term technical indicators. The persistent correlation highlights the necessity of monitoring liquidity flows to gauge cryptocurrency market momentum effectively.