Bitcoin Expected to Peak Ahead of the S&P as Liquidity Perception Drives Markets, Willy Woo Says

COINOTAG News notes that Willy Woo, a prominent crypto analyst, argues price action often foreshadows shifts in global liquidity rather than merely reacting to it. He suggests markets price in expected liquidity ahead of M2 expansion, with risk assets typically leading traditional benchmarks.

In a global liquidity cycle, Bitcoin can function as a liquidity perception mechanism, with Bitcoin tending to peak earlier than the S&P at market tops as investors reallocate risk. This dynamic underscores crypto’s role as a leading indicator for capital flows.

Critics argue M2 is an imperfect proxy for total liquidity because dollars represent only a portion of the fiat supply; much sits in foreign currencies. As a result, M2 largely tracks dollar strength, while the DXY provides a more direct gauge of Bitcoin’s liquidity link.

Traders should monitor the DXY and Bitcoin price action alongside risk asset trends, applying a disciplined, liquidity-focused framework. Aligning entry timing with macro liquidity shifts can improve risk controls and enhance portfolio resilience.