Bitcoin As ‘Global Liquidity Barometer:’ This Relationship Holds 83% Of The Time Over 12-Month Periods
Renowned macro analyst Lyn Alden released a comprehensive study exploring Bitcoin’s (CRYPTO: BTC) role as a global liquidity barometer, revealing its unique sensitivity to monetary conditions and potential as an investment tool.
What Happened: The research, conducted by Sam Callahan under Alden’s guidance, finds that Bitcoin moves in the same direction as global liquidity 83% of the time over 12-month periods – a higher correlation than any other major asset class. This strong relationship positions Bitcoin as a “liquidity barometer” that reflects changes in the global money supply and dollar strength.
Bitcoin As Liquidity Indicator
Callahan explains that Bitcoin’s purity as a liquidity indicator stems from its lack of confounding factors like earnings or dividends that influence stocks. Unlike gold …
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