Summary
- On-chain analyst Willie Woo assessed that Bitcoin's price reacts more sensitively to dollar strength/weakness (DXY) than to global M2.
- He stated that because market prices move by pre-reflecting 'expected liquidity', not actual increases in M2, Bitcoin forms highs and lows before the S&P500.
- He emphasized that when assessing Bitcoin flows, it is more accurate to refer to the Dollar Index (DXY) than global M2.
On-chain analyst Willie Woo (Willie Woo) assessed that Bitcoin (BTC) price movements react more sensitively to dollar strength/weakness (DXY) than to global M2 (broad money).
On the 13th, Woo wrote on his X (formerly Twitter), "Market prices do not follow actual increases in M2, but move by pre-reflecting 'expected liquidity'," adding, "Because of this, Bitcoin forms highs and lows before the S&P500." He explained that among risk assets, Bitcoin is the asset that reflects liquidity the fastest.
Willie Woo emphasized, "A large portion of global M2 is composed of non-dollar currencies, so in effect global M2 is closer to an indicator showing changes in the value of the dollar," and "When analyzing Bitcoin flows, it is more accurate to refer to the Dollar Index (DXY) than global M2."
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
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