The expert predicted a reversal of bitcoin due to the growth of global liquidity

The expert predicted a reversal of bitcoin due to the growth of global liquidity

Expert predicted bitcoin reversal due to rising global liquidity

The cryptocurrency market is preparing for an upward trend reversal in light of rising 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 emphasized that Bitcoin is more dependent on the dynamics of the 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 associated with 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.

Expert predicts bitcoin reversal due to rising global liquidity

Data: Youtube. real vision.

The expert explained that the formation of extremes of the macro indicator preceded the trend reversal 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. This is a network adoption model that grows over time in accordance with these wide volatile ranges,” Pal explained.

Recall, Grayscale analysts allowed the crypto winter to end by the end of March 2023.

Earlier, Pal predicted the growth of the Ethereum rate to $20,000.

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