Bitcoin vs. M2: The CEO of Abra anticipates a rise to $130,000 as liquidity flows
Bill Barhydt, founder and CEO of the cryptocurrency banking platform Abra, made waves on Crypto-X over the weekend by reposting a collage of global M2 vs. Bitcoin charts, initially popularized by macro investor Raoul Pal and researcher Julien Bittel. "I have seen more than a dozen posts with different versions of the global M2 liquidity chart vs. Bitcoin; I have attached several here. Thanks to @RaoulGMI and his colleague @BittelJulien for uncovering the trend," he wrote.
Most of these charts predict a drop in the coming days to around $100,000 and then a new all-time high of $130,000 in August/September... Or this could all be nonsense. Anyway.
Will M2 continue?
Expanding on the macroeconomic context, Barhydt argued that "global liquidity must increase significantly in the coming months. Bitcoin remains the mother of all liquidity sponges (when it comes to devaluation)." He explained the reflexivity of the asset clearly: as the fiat supply grows, Bitcoin absorbs the excess money, and the resulting gains "will very likely extend to other L1 platforms and ultimately to speculative alternative cryptocurrencies: the proverbial alternative cryptocurrency season."
