Analysis: Monetary supply indicators suggest that Bitcoin prices may rise further

ChainCatcher news, according to an analysis by Matrixport independent analyst Markus Thielen, since November 2023, the money supply indicators have been closely related to BTC price trends, reflecting the depreciation of the dollar and the market's expectations for global liquidity expansion.

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