Analysis: Bitcoin's decoupling from global M2 stems from the US Treasury's liquidity operations

Raoul Pal, founder of Global Macro Investor, noted that since the beginning of 2023, Bitcoin's price has lagged behind global M2 money supply by approximately 12 weeks, reflecting a three-month delay in the transmission of liquidity to the crypto market. However, this pattern has broken down since July 16th: despite the continued expansion of global M2, Bitcoin has fallen into sideways volatility.