Willy Woo: Bitcoin prices lead the M2 indicator, and DXY is more suitable for assessing correlation with Bitcoin.

According to BlockBeats news, on November 13, cryptocurrency analyst Willy Woo stated that “the market does not follow the expansion of global M2 supply, but is speculative. This means the market will price in expected liquidity in advance. Risk assets often lead M2. Therefore, at the global peak, you will see the S&P index peak early, while Bitcoin will also peak earlier. This is because Bitcoin can act as a liquidity perception mechanism. Furthermore, M2 is a flawed indicator because when you assess the total amount of fiat in the system, you measure it in dollars, but in reality, only about 17% is in dollars, with the rest being foreign currency. So M2 actually reflects more the strength or weakness of the dollar. It turns out that a more appropriate indicator is DXY (Dollar Index), which is much more reliable when assessing correlation with Bitcoin.”