Bitcoin has recently diverged from its historical correlation with the Global Liquidity Index, as global liquidity has continued to rise since the October peak while Bitcoin has experienced a pullback. This dislocation highlights a short-term gap, which, according to historical trends, typically resolves quickly, as Bitcoin has usually moved in the same direction as expansions in the Global Liquidity Index, which measures global monetary expansion based on major central bank balance sheets and money supply.
Bitcoin diverges from Global Liquidity Index amid market changes
