A study by VanEck has found that 54% of Bitcoin's price variance since 2014 can be attributed to global M2 liquidity cycles. The research, conducted by CEO Jan van Eck and Head of Digital Assets Research Matthew Sigel, utilized multivariable regression analysis to establish a strong correlation (r² = 0.54) between Bitcoin's price and the supply of the top five fiat currencies. The study underscores Bitcoin's role as a hedge against currency fluctuations and highlights the increasing influence of Asian markets in Bitcoin price discovery.
VanEck Study Links Bitcoin Price Variance to Global M2 Liquidity
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