- Raoul Pal believes crypto has “probably bottomed” and the global money supply is bottoming out and ready to go higher.
- The ex-Goldman Executive warns that slow growth results in a drop in bond yields, inflation and an improvement in crypto market sentiment.
- Analysts have predicted Bitcoin price will run up to $24,271 in a market-wide recovery.
A former Goldman Sachs Executive Raoul Pal believes that the crypto market is ready for a massive recovery as money supply bottoms out. The analyst believes cryptocurrencies are ready to recoup their losses as the US money supply increases and bond yields drop. This is likely to push investors into volatile digital assets.
Also read: Top US consumer watchdog watches crypto payments with intense scrutiny
Pal considers Money Supply the biggest macro influence on crypto
Raoul Pal, the former Goldman Sachs executive recently commented on the US M2 Money Supply and its impact on crypto. The ex-Goldman Sachs executive believes that M2, a broad measure of money supply, is directly correlated with crypto. An increase in M2 money supply results in a decrease in bond yields, inflation and a recovery in crypto.
Pal explains,
ISM is inverted and the money supply looks like it should start bottoming out and going higher. If it goes higher, crypto should go with it. Now, that makes sense because as economic weakness comes, the central banks start coming into play, liquidity starts being pushed into the system.
Pal noted that money supply growth has started in China and this phenomenon is likely to be witnessed globally. An increase in money supply improves the macroeconomic outlook for crypto.
The Real Vision CEO therefore concludes that crypto has probably bottomed.
Analysts predicted Bitcoin run up to $24,271
Trader1sz, a crypto analyst and trader evaluated the Bitcoin price trend and predicted a rally in the asset. The analyst believes Bitcoin price is likely to climb to $24,271.
Bitcoin-USD Perpetual Inverse Swap Contract
FXStreet analysts have identified that the development in Bitcoin price is bad for spot buyers. Analysts shared key price levels, and the steps to trade Bitcoin profitably in the current setup, in the video shared below:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
SEC Chair Gensler hints at resignation amid lawsuit from 18 states accusing the regulator of unlawful overreach
In a filing on Thursday, 18 states, along with the DeFi Education Fund, issued a lawsuit against the Securities and Exchange Commission, alleging that the regulator's crackdown on the crypto industry has been unlawful and unconstitutional.
Bitcoin Price Forecast: BTC eyes $100K, what are the key factors to watch out for?
Bitcoin trades below $90K in the Asian session on Friday as investors realized nearly $8 billion in profits in the past two days. Despite the profit-taking, Bitwise CIO Matt Hougan suggested that BTC could be ready for the $100K level, fueled by increased stablecoin supply and potential government investment.
Ethereum Price Forecast: ETH could rally to $4,522 despite mixed on-chain flows among investors
Ethereum is down over 1% on Thursday following record net inflows across ETH exchange-traded funds in the past six days. Despite the bullish market outlook, $300 million worth of unstaked ETH could hit the market and cause downward pressure on prices.
Crypto Today: Bhutan sells $33M BTC, McDonald’s launches NFTs, PEPE, SUI emerge top gainers
The aggregate cryptocurrency market capitalization shrank by 1.45% on November 14, reflecting a $42.6 billion dip. In the last 24 hours, 170,878 traders were liquidated to the tune of $485.13 million, per Coinglass data.
Bitcoin: Further upside likely after hitting new all-time high
Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.