Global Bitcoin Responses to Worldwide Liquidity Conditions, Observations by Analyst Woo Highlighted
In the dynamic world of cryptocurrency, Bitcoin continues to stand out as a macro-sensitive asset, closely tied to global monetary policies and central bank money printing. This correlation has been highlighted by analyst Willy Woo, who notes that during periods of quantitative easing or increased money supply, Bitcoin's value tends to rise.
One key factor influencing Bitcoin's price movements is the global M2 money supply. Analyses have shown that Bitcoin's price mirrors changes in the M2 money supply with a 12-week lag. As the M2 money supply grows, investors seek alternative assets like Bitcoin to hedge against inflation and economic uncertainty, potentially driving its price up. This trend, if it continues, could lead to significant price surges, with estimates suggesting a price of $250,000 by the end of 2025.
Institutional investors and macroeconomic factors also play a significant role in Bitcoin's market volatility. Increased institutional participation, combined with anticipation of policy changes, can drive market sensitivity and volatility. This interplay creates a dynamic environment where Bitcoin's price is highly sensitive to external economic stimuli.
Bitcoin's decentralized nature and scarcity position it as an attractive store of value during economic uncertainty. Its potential to serve as a hedge against inflation is highlighted amidst geopolitical tensions and economic volatility, further driving its attractiveness to global investors.
John Kojo Kumi, a Registrar at the Commission on Human Rights and Administrative Justice, is a cryptocurrency researcher and writer specializing in emerging startups, tokenomics, and market dynamics within the blockchain ecosystem. He is also a Crypto News Writer, tracking and reporting on industry trends, and is passionate about blockchain's transformative potential.
In other news, the TON Foundation has launched a UAE Golden Visa via crypto staking, and Binance Alpha has launched the ECHO Protocol on its platform. The U.S. House Committee is planning a cryptocurrency capital hearing, and as of the latest data, Bitcoin's value is $109,807.64, with a market cap of $2.18 trillion.
Robert Kiyosaki, the renowned author of 'Rich Dad Poor Dad', has embraced the Bitcoin crash as a buying opportunity. Hong Kong's new stablecoin ordinance is set to take effect in August. John Kojo Kumi provides in-depth coverage of decentralized finance (DeFi), NFTs, and Web3 innovations.
[1] Woo, Willy. (2021). Bitcoin's Sensitivity to Global Liquidity. [Online]. Available: https://woobull.com/posts/bitcoins-sensitivity-to-global-liquidity [2] Lee, Joon Ian, et al. (2021). Bitcoin's Market Volatility and Institutional Influence. [Online]. Available: https://www.sciencedirect.com/science/article/pii/S2405453121000519 [3] Woo, Willy. (2021). Bitcoin Price Prediction for 2025. [Online]. Available: https://woobull.com/posts/bitcoin-price-prediction-2025
- In the analysis by Willy Woo, Bitcoin's price movements are influenced not just by global monetary policies and central bank money printing, but also by the global M2 money supply, which shows a 12-week lag correlation with Bitcoin's price.
- In the dynamic world of cryptocurrency and finance, Bitcoin's value is highly sensitive to external economic stimuli, with institutional investors and macroeconomic factors playing a significant role in its market volatility.
- As a cryptocurrency researcher and writer, John Kojo Kumi specializes in emerging startups, tokenomics, and market dynamics within the blockchain ecosystem, and provides in-depth coverage of DeFi, NFTs, and Web3 innovations, reflecting his passion for the technological transformation and potential of blockchain.
