Part 9/12:
Dan points out that this crypto-native leverage and liquidity are often overlooked when analyzing macro charts. These internal forces can cause Bitcoin and other cryptos to decouple temporarily from external liquidity signals, especially during periods of exuberance or panic. Consequently, relying exclusively on macro-driven liquidity indicators may result in misleading expectations about market tops or bottoms.
Implications for Traders and Investors
The key takeaway from this analysis is to exercise caution when interpreting global liquidity charts. While they remain useful for gaining a broad directional sense, they are limited during extreme market phases where internal, cryptonative leverage and liquidity dominate price action.