【Indicator Update】Counterfeit Big Reversal, Hot in Progress 😉

A wave of updates, synchronized momentum continues 😏

The K-line chart in the image represents the total market capitalization of cryptocurrencies outside the top 10; the line chart shows the M2SL / DXY data delayed by 11 weeks

M2SL is the M2 money supply data published by the Federal Reserve, measured in hundreds of millions of dollars. It measures the total amount of broad money circulating in an economy

DXY (U.S. Dollar Index) is an index that measures the value of the U.S. dollar relative to a basket of six major international currencies (Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona, and Swiss Franc)

M2SL/DXY is the ratio obtained by dividing the M2 money supply by the dollar index

When M2SL/DXY rises, investors may expect the prices of risk assets to increase, as increased liquidity and a weak dollar lower the cost of holding non-dollar assets

When M2SL/DXY falls, it may indicate a tightening monetary environment, a strengthening dollar, which could be beneficial for dollar assets (such as U.S. Treasury bonds), but puts pressure on assets like gold and cryptocurrencies