Bitcoin becomes negatively correlated with the Global Liquidity Breadth Index, and ETF inflows signal institutional accumulation

According to Odaily, the correlation between Bitcoin and the "Global Easing Breadth Index," which covers 41 central banks, has recently become significantly negative. This indicates that institutional funds, represented by ETF, are more forward-looking and may have already positioned themselves in advance for a potential future cycle of monetary policy easing. This week, spot Bitcoin ETFs recorded the largest single-day net inflow since late February, with the market generally believing that institutional investors now regard the current price range as an opportunity for allocation and accumulation. However, the overall market is still oscillating within a range and remains structurally fragile. Analysts believe organic demand is currently weak, corporate-level Bitcoin allocation has slowed, and volatility in the options market has risen significantly after prices fell below $68,000, with traders more inclined to increase downside protection. (CoinDesk)

Note: The Global Easing Breadth Index is an indicator used to measure the “coverage of monetary policy easing” by the world's major central banks. It typically tracks around 40+ key central banks (such as the Federal Reserve, European Central Bank, Bank of Japan, etc.), recording their policy directions like interest rate cuts and hikes.