$BTC Bitcoin shows a strong correlation with global liquidity, and many analyses suggest that its increase may precede a price breakout for BTC.

🔗 BTC correlation with global liquidity – overview

What is global liquidity?

This is the total amount of available capital in the financial system, often calculated as:

Balances of major central banks Fed, ECB, PBoC, BoJ

Dollar reserves in the banking system e.g., reverse repo, TGA

base money supply M2