According to the source, NYDIG’s Greg Cipollaro states Bitcoin is not an inflation hedge but a liquidity barometer that tends to perform better when the U.S. dollar weakens (source: NYDIG, Greg Cipollaro). For trading, this points to monitoring the ICE U.S. Dollar Index trend, where DXY downside aligns with more favorable BTC risk conditions per Cipollaro’s framework (sources: NYDIG; ICE U.S. Dollar Index). Traders can also track U.S. liquidity gauges such as the Federal Reserve balance sheet (H.4.1), Reverse Repo usage, and the Treasury General Account to assess dollar liquidity shifts that may influence crypto risk appetite under the NYDIG liquidity lens (sources: Federal Reserve H.4.1; Federal Reserve Overnight RRP; U.S. Treasury TGA; NYDIG).