Bitcoin and cryptocurrencies will get a boost from exploding global money supply: former Goldman Sachs executive - Raul Pal, CEO of The Daily Hodl Real Vision and former Goldman Sachs executive, believes that increased global liquidity will lead to bitcoin's growth.
Mr. Pal told his 1.1 million followers on social media platform X that the historical correlation between #bitcoin and the global money supply index (M2),
"This too shall pass, he said, suggesting that the highest digital asset by market capitalization is poised for a big breakout. #Cryptocurrencies still lack liquidity due to a stronger U. S. dollar and interest rate hikes in Q4 2024. Financial conditions are easing quickly and M2 has returned to new highs. This is a normal adjustment. '
Friends believe bitcoin is repeating a similar price pattern from 2017, correlating with M2 when Donald Trump took office for his first term. Bitcoin experienced a sharp correction in 2017, but then repeated the rise.
"There was exactly the same correction in 2017, caused by the same reaction to Trump's policies (strengthening dollar and rising interest rates, then a reversal)
Pal also, "We believe bitcoin will begin to trade higher within a logarithmic regression channel (a type of technical analysis that provides insight into the highs and lows of an asset's long-term trend)"
Over time, we will simply continue to move upward through the logarithmic regression channel. The progression of the cycle is determined by whether it stays near the base line (red) or rises another one or two standard deviations above it.
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