Analysis: Monetary Supply Indicators Suggest Bitcoin Price May Rise Further

According to ChainCatcher, Matrixport independent analyst Markus Thielen analyzed that since November 2023, the money supply indicator has been closely correlated with BTC price movements, reflecting the depreciation of the US dollar and market expectations for global liquidity expansion.

Although this correlation is more of a proxy indicator for market sentiment rather than a reliable driving factor, it still suggests that Bitcoin prices have further upside potential. However, historical data shows that this trend is cyclical. As the Federal Reserve is expected to cut interest rates, if Chairman Powell delivers a dovish signal and hints at further rate cuts, the US dollar may weaken, which will enhance market liquidity and support the rise in Bitcoin prices.