Matrixport: Money Supply indicates that Bitcoin will have more room to rise

According to a report by Jinse Finance, Matrixport released a daily chart analysis stating that since November 2023, the money supply indicator has been highly correlated with the price movement of Bitcoin, reflecting expectations of a weakening dollar and global liquidity expansion. While this correlation is a useful signal, it serves more as an indicator of market sentiment rather than a reliable driving factor. Nevertheless, it still points to the possibility of further rise in Bitcoin, although history shows that it has cyclical tendencies. As the Federal Reserve is expected to cut interest rates, if Powell sends dovish signals and indicates further rate cuts, the dollar may weaken, which will enhance liquidity and support Bitcoin prices.

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