A new study by VanEck reveals a surprising link between Bitcoin’s price fluctuations and global liquidity cycles. The research shows that over 50% of Bitcoin’s price movements since 2014 are directly linked to shifts in M2 money supply, highlighting the crucial role fiat currency plays in cryptocurrency valuation. This suggests Bitcoin acts as an asset that hedges against excessive monetary expansion. The study was conducted by VanEck executives Jan van Eck and Matthew Sigel, who employed multivariable regression analysis to analyze Bitcoin’s price movement over time. It found a strong correlation between Bitcoin’s price and global M2 liquidity, reinforcing the idea of Bitcoin as an ‘anti-money printing’ asset. The findings were based on data from Asian markets, which have been particularly volatile in recent times, indicating that tightening regional liquidity is driving near-term price swings for Bitcoin. This study has significant implications for both individual investors and broader market dynamics as it highlights Bitcoin’s potential to hedge against monetary expansion driven by inflation.