Bitcoin and Money Supply: A Delayed but Inevitable Catch-Up?

Bitcoin usually moves in parallel with the money supply, rising as liquidity increases. Historically, there has been about a 10-week lag between money supply growth and Bitcoin's price movement. However, at the moment, we are seeing an increase in the money supply while Bitcoin is declining—an imbalance that is unlikely to last long.

This discrepancy could present an opportunity for investors anticipating a price correction soon. Increased liquidity in the markets may drive Bitcoin back up. Additionally, economic factors such as inflation and central bank policies play a role in market movements. Historically, Bitcoin has tended to catch up with monetary expansion, suggesting a potential rebound ahead.

Source :
https://x.com/Vivek4real_/status/1895543162615246933