Bitcoin: A New Benchmark for Global Liquidity

Greg Cipolaro, NYDIG’s Global Head of Research, challenges the conventional view of Bitcoin as a hedge against inflation. He asserts that this notion is inaccurate, emphasizing real interest rates as the more significant driver of Bitcoin’s price fluctuations. Notably, recent years have witnessed Bitcoin increasingly acting as a barometer for global liquidity levels, with its price exhibiting a strong inverse relationship to real interest rates. This suggests Bitcoin may hold greater value in reflecting changes in liquidity within the global financial system.