Expert predicts Bitcoin turnaround amid rising global liquidity

The cryptocurrency market is bracing for an upside turnaround as money supply grows. In a Real Vision podcast, Raul Pal, a former Goldman Sachs top executive and macro investor, said so.

The expert emphasized that Bitcoin is more dependent on the dynamics of money supply (M2), rather than halving. The latter is not mandatory if the influence of the former factor exists.

“Digital assets do not depend on the business cycle, but their behavior is linked to flows of global liquidity. At present, the divergence of M2 from the trend stands at roughly one and a half standard deviations and is widening,” — he said.

The expert explained that the formation of macro-indicator extremes preceded the trend reversals in the crypto market.

“Bitcoin is not a cyclic asset. It will not revert to the state it once was, as oil or other commodities do. This is a model of network adoption that grows over time within these broad volatile ranges,” — Pal explained.

As reported, Grayscale analysts anticipated the end of the crypto winter by the end of March 2023.

Earlier, Pal forecast Ethereum’s price would reach $20,000.

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