Analysts: Bitcoin price leads the M2 indicator; the DXY indicator is more suitable for assessing its correlation with Bitcoin.

Odaily Planet Daily reports that crypto analyst Willy Woo wrote, "The market doesn't follow the expansion of global M2 supply; instead, it's speculative. This means the market prices in anticipated liquidity in advance. Risk assets tend to lead M2. Therefore, at global peaks, you'll see the S&P 500 peak earlier, and Bitcoin will peak even earlier. This is because Bitcoin acts as a liquidity-sensing mechanism. Furthermore, M2 is a flawed indicator because when you assess the total amount of fiat currency in the system, you're measuring it in US dollars, but only about 17% is actually US dollars; the rest is foreign currency. So M2 actually reflects more the strength of the US dollar. A more suitable indicator has proven to be the DXY (US Dollar Index), which is far more reliable when assessing its correlation with Bitcoin."