A senior researcher from Glassnode has challenged the idea that the price of Bitcoin is related to the offer of US money or other important economies.
No structural bonds between Bitcoin and supply of money from the main economies
In a new post on X, the Senior researcher of Glassnode Cryptovart.₿ spoke of the correlation between Bitcoin and the money supplies of the group of seven (G7). The “correlation” here refers to an indicator that measures how much the prices of two goods provided are closely moving.
When the value of this metric is positive, it means that the price of one activity is reacting to movements in the other by moving in the same direction. The closer the indicator is 1, the stronger the relationship is.
On the other hand, the indicator being under the zero sign suggests a negative correlation between prices. That is, they are moving in opposite directions. This behavior is the strongest at -1.
Now, here are the graphs shared by the analyst who provide some representations of the correlation between Bitcoin and the offer of money from each G7 nation in a 90 -day rolling window:
As is visible in the graphs, the correlation between Bitcoin and the supply of money of seven of the largest economies in the world has oscillated wildly over the years. Often, the periods of positive values of the metric are subsequent from a phase of negative or neutral levels, without there are no light macroeconomic trigger behind the shifts.
“Bitcoin correlation with US M2 or other main economies of economics does not show any coherent or predictive model,” observes Glassnode researcher. A long -term view through an 180 -day rotation window also shows the same.
“Despite the frequent statements of a stable link, the data suggest that the relationship is largely stochastic rather than structural,” says Cryptoviizart. While Bitcoin is certainly not independent of the global economy, this model suggests that there is a mix of many other factors that also play a role in driving the coin.
In a previous x, the analyst shared the trend in the 180 -day correlation between Bitcoin and two traditional activities: Gold and S&P 500.
From the higher graphic designer, it is visible that Gold and Bitcoin have seen their correlation of 180 days on a neutral level more recently, indicating that the two have practically moved independently of each other. In the meantime, the second graph shows a remarkable positive value for the metric between S&P 500 and BTC, which implies that the cryptocurrency has moved in tandem with stocks to a certain extent.
Price btc
Bitcoin exceeded $ 122,000 during the weekend, but it would seem that the asset started on Monday with a portrait since its price returned to $ 119,000.