
CryptoChan|Mar 30, 2025 08:15
Don't panic, you're about to get through it. Cute little brother 🧘
M2SL is the M2 money supply data released by the Federal Reserve of the United States, measured in billions of dollars. It measures the total amount of broad money circulating in an economy
DXY (America Dollar Index) is an index that measures the value of the US dollar relative to a basket of six major international currencies (Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona, and Swiss Franc)
M2SL/DXY is a ratio obtained by dividing the M2 money supply by the US dollar index
When M2SL/DXY rises, investors may expect risk asset prices to rise, as increased liquidity and a weak US dollar lower the cost of holding non US dollar assets
When M2SL/DXY declines, it may indicate that the monetary environment is tightening and the US dollar is strengthening, which may benefit US dollar assets (such as US treasury bond bonds) BTC and other assets pose pressure
This article is sponsored by Bitget | @ Bitgetzh
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