Analysis: Money supply indicators suggest Bitcoin prices may rise further

According to Markus Thielen, an independent analyst at Matrixport, money supply indicators have been closely correlated with Bitcoin (BTC) price movements since November 2023, reflecting the depreciation of the US dollar and market expectations for expanded global liquidity. While this correlation is more of a proxy for market sentiment than a reliable driver, it still suggests further upside for Bitcoin prices, though historical data suggests this trend is cyclical. With the Federal Reserve expected to cut interest rates, if Chairman Powell signals a dovish tone and hints at further rate cuts, the US dollar could weaken, boosting market liquidity and supporting Bitcoin prices.