Former Goldman Sachs Manager Raoul Palbelieves the crypto market is poised for a massive recovery as the money supply bottoms out. The analyst thinks that cryptocurrencies are ready to recoup their losses as the US money supply increases and bond yields fall. This is likely to push investors towards volatile digital assets.
Paul Sees Money Supply as Biggest Macro Impact on Crypto
Koinfinans.com As we reported, Raoul Pal recently commented on the US M2 Money Supply and its impact on crypto. Old Goldman Sachs executive believes M2, a broad measure of money supply, is directly related to crypto. An increase in the M2 money supply is a condition that causes a decline in bond yields, inflation and crypto recovery.
Pal describes this event in these words:
“ISM has reversed and it looks like the money supply should start bottoming out and going higher. If it rises, crypto should go with it. Now, that makes sense because as economic weakness comes in, central banks start to step in, liquidity starts being pushed into the system.”
Pal stated that the growth in money supply has started in China and this phenomenon can be seen globally. The increase in the money supply is improving the macroeconomic outlook for crypto. This is why Real Vision CEO concludes that crypto has probably bottomed out.
Trader1sz, a crypto analyst and trader, bitcoin price evaluated the trend and predicted an uptrend in the asset. The analyst believes that the Bitcoin price will rise to $24,271.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.