4/ Track the NLQ metric yourself, make charts like these & get access to other tools (all free) using my #Python scripts. Usage guide in this twitter thread:
https://twitter.com/Tech_Pleb/status/1619721722714017792?s=20&t=pyU8mftBLI6xnrlL1_ab0Q
That's very cool how twitframe tweet previews have been added.
4/ Track the NLQ metric yourself, make charts like these & get access to other tools (all free) using my #Python scripts. Usage guide in this twitter thread:
https://twitter.com/Tech_Pleb/status/1619721722714017792?s=20&t=pyU8mftBLI6xnrlL1_ab0Q
3/ Compare NLQ YoY Δ% vs BTC YoY Δ% to Raoul Pal's great chart showing global M2 money supply deviation from trend vs crypto total market cap YoY Δ%. The deviation from trend metric is similar to YoY Δ% in that it is essentially a first order derivative of the underlying metric. We see similar behavior between global M2 and Fed NLQ with respect to BTC. I expect that most global liquidity metrics will show a similar behavior.
2/ Here is the same base series of the last chart. Considering that YoY Δ% is the first derivative of the base metric (being asset price or $ balance) with respect to time. Correlation is very high since March 2020, since the fiat firehose was unleashed.
USD Net liquidity metric (NLQ) vs BTC full history. YoY Δ%. Periods of increasing liquidity coincide with periods of BTC price appreciation. This makes sense, as the fiat spigots are opened, some % of the new money finds its way into BTC. As people begin to worry about dollar debasement, the trend accelerates. Then you get times like 2020 where the money printing is so fast and distractions are significant so you get a big lag between the printing and the pumping (of BTC price).
