Technical analysts have raised doubts about the purported correlation between Bitcoin (BTC) prices and the M2 money supply. While initial analyses suggested a strong link, further scrutiny reveals inconsistencies when adjusting chart settings. M2, encompassing cash and various deposits, is traditionally used to assess fiat liquidity. However, critics argue that M2 may not accurately reflect liquidity impacting BTC's purchasing power. The debate underscores the need for careful analysis to distinguish correlation from causation in the complex dynamics between BTC and global money supply.
Analysts Question Bitcoin's Correlation with M2 Money Supply
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