The post Rising DXY, Not M2, Is Slowing Bitcoin Momentum – Analyst appeared on BitcoinEthereumNews.com.

Analyst Willy Woo warns that Bitcoin’s momentum is in a “mid-cycle slowdown,” evidenced by a weakening MACD. He argues the rising U.S. Dollar Index (DXY) is the true gauge of liquidity, signaling a global “shift to safety” that is pressuring risk assets. Woo dismisses Global M2 as a “flawed” metric, as it’s distorted by foreign currencies (83%) and housing credit (30-50%). Bitcoin’s long-term momentum is showing signs of a mid-cycle slowdown. This, according to analyst Willy Woo, is a direct reflection of a strengthening U.S. Dollar Index (DXY). Woo argues that as the DXY rises, it signals a global “shift to safety” that is now pressuring risk assets. Woo: DXY, Not M2, Is the True Liquidity Gauge Willy Woo described the DXY as a more practical gauge for investor sentiment than Global M2. He noted that a stronger U.S. dollar, while declining in long-term purchasing power, remains the primary short-term safe-haven asset. High DXY (strong dollar) means a flight towards safety and risk off sentiments by investors. Underlying this statement is the reality (for now) that USD is considered a safe haven currency (nevermind in long time frames it debases at 7% per year).https://t.co/p9szp2dmUY — Willy Woo (@woonomic) November 12, 2025 He argues that risk assets like Bitcoin and the S&P 500 tend to move ahead of liquidity cycles, not follow them. They anticipate changes in liquidity. This, Woo suggests, is why both Bitcoin and equities tend to peak before money-supply growth (M2) crests. Related: US Dollar Index (DXY) Plunge Pushes Bitcoin to $115,000 as Fed Rate-Cut Speculation Heats Up Why M2 Is a ‘Flawed’ Metric: Housing and Foreign Currencies Woo also pointed to structural issues with using M2 as a liquidity measure. He noted that only about 17% of Global M2 is denominated in U.S. dollars. The majority is…

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Filed under: News - @ November 13, 2025 6:25 pm