A noteworthy analysis on the relationship between the NFCI and bitcoin was recently shared by Fejau, host of the Forward Guidance Podcast. In an X thread, Fejau pointed out the negative correlation between the NFCI and bitcoin, arguing that looser financial conditions often act as a tailwind for risky assets. According to Fejau, when financial conditions loosen, easing increases, leading to a risk-on environment where speculative assets, including bitcoin, tend to rally.
Source: https://www.coindesk.com/markets/2024/09/23/bitcoin-could-surge-thanks-to-looser-financial-conditions/?utm_medium=referral&utm_source=rss&utm_campaign=headlines