The cryptocurrency market is preparing for an upward trend reversal in light of the growth in the money supply. This was stated in the Real Vision podcast by the former top manager of Goldman Sachs and macro investor Raul Pal.
The specialist stressed that bitcoin is more dependent on the dynamics money supply (M2)than from halving. The latter is optional if there is an influence of the first factor.
“Digital assets do not depend on the business cycle, but their behavior is related to global liquidity flows. Currently, there is a divergence of M2 from the trend by about one and a half standard deviations, and it is increasing”, he shared his observations.
The expert explained that the formation of extremes of the macro indicator preceded the reversal of trends in the cryptocurrency market.
“Remember that bitcoin is not a cyclical asset. It will not return to the state it was in, like oil or other commodities. It’s a network adoption model that grows over time in line with these wide, variable ranges.” Pal explained.
Recall, Grayscale analysts admitted completion of the crypto winter by the end of March 2023.
Formerly Pal predicted the growth of the Ethereum rate to $20,000.
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