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Willy Woo: Bitcoin prices lead the M2 indicator, and DXY is more suitable for assessing correlation with Bitcoin.
On November 13, crypto analyst Willy Woo stated that “the market does not follow the expansion of global M2 supply, but is speculative. This means the market will price in expected Liquidity in advance. Risk assets often lead M2. Therefore, at the global peak, you will see the S&P index peak in advance, while Bitcoin will also peak earlier. This is because Bitcoin can serve as a Liquidity perception mechanism. Moreover, M2 is a flawed indicator because when you assess the total amount of fiat in the system, you are measuring in dollars, but in reality, only about 17% is in dollars, while the rest is in foreign currencies. So M2 actually reflects more the strength of the dollar. It turns out that a more suitable indicator is DXY (Dollar Index), which is much more reliable in assessing correlation with Bitcoin.”