Bitcoin Growth Possible Soon – Former Top Manager of Goldman Sachs
Former Goldman Sachs top manager and macro investor Raoul Pal believes that an upward trend is possible in the cryptocurrency market soon, as the money supply is growing.
In the Real Vision podcast, the analyst stated that the value of Bitcoin depends more on the dynamics of the money supply (M2) than on the halving, and the latter of these two factors is not so important if there is a clear influence of the former. And now there is a divergence of M2 with the trend by about one and a half standard deviations, and it is increasing, the macro investor added.
He recalled that the trend reversal in the cryptocurrency market was often preceded by the formation of macro indicator extremes.
According to him, the behaviour of crypto assets is related to the flows of global liquidity, and they do not depend on business cycles, like oil or other traditional market commodities:
“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 pattern that grows over time in line with these wide, variable ranges,” Pal explained.