How To Read The Macro-Crypto Relationship
As crypto matures, its price movements are becoming more tied to macro conditions. So, what key macro factors should we watch, and how do they connect to the crypto market?
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🕒 3:15 PM
📅 Sep 12, 2025
✍️ By thevisor17
#1 Global Liquidity (M2, TGA, DXY).Global liquidity = how much money is circulating in the market.
M2 money supply → more liquidity = bullish for risk assets like crypto.
TGA (Treasury General Account) → when balances rise, liquidity dries up = bearish pressure.
DXY (Dollar Index) → stronger USD often puts pressure on crypto prices.
#2 Monetary Policy.
The Fed sets monetary policy:
Quantitative Easing (QE) → more liquidity, generally bullish for crypto.
Quantitative Tightening (QT) → less liquidity, usually bearish for crypto.
#3 Correlation With Major Assets.
BTC now strongly correlates with S&P 500 and Nasdaq.
📈 If equities rise → Bitcoin tends to rise.
📉 If equities drop → Bitcoin usually falls too.
Meanwhile, BTC has little correlation with gold (gold has rallied while BTC stayed sideways).
#4 Global Geopolitical Conditions.
Uncertainty from wars, conflicts, tariffs, or economic slowdowns can push capital out of crypto. Markets prefer stability and calm.
⚡ Always remember: Macro sets the rhythm, crypto dances to the beat. 🥁