Ex-Goldman Executive warns economy will drop off a cliff, crypto will rise
- Raoul Pal believes crypto has “probably bottomed” and the global money supply is bottoming out and ready to go higher.
- The ex-Goldman Executive warns that slow growth results in a drop in bond yields, inflation and an improvement in crypto market sentiment.
- Analysts have predicted Bitcoin price will run up to $24,271 in a market-wide recovery.
A former Goldman Sachs Executive Raoul Pal believes that the crypto market is ready for a massive recovery as money supply bottoms out. The analyst believes cryptocurrencies are ready to recoup their losses as the US money supply increases and bond yields drop. This is likely to push investors into volatile digital assets.
Also read: Top US consumer watchdog watches crypto payments with intense scrutiny
Pal considers Money Supply the biggest macro influence on crypto
Raoul Pal, the former Goldman Sachs executive recently commented on the US M2 Money Supply and its impact on crypto. The ex-Goldman Sachs executive believes that M2, a broad measure of money supply, is directly correlated with crypto. An increase in M2 money supply results in a decrease in bond yields, inflation and a recovery in crypto.
Pal explains,
ISM is inverted and the money supply looks like it should start bottoming out and going higher. If it goes higher, crypto should go with it. Now, that makes sense because as economic weakness comes, the central banks start coming into play, liquidity starts being pushed into the system.
Pal noted that money supply growth has started in China and this phenomenon is likely to be witnessed globally. An increase in money supply improves the macroeconomic outlook for crypto.
The Real Vision CEO therefore concludes that crypto has probably bottomed.
Analysts predicted Bitcoin run up to $24,271
Trader1sz, a crypto analyst and trader evaluated the Bitcoin price trend and predicted a rally in the asset. The analyst believes Bitcoin price is likely to climb to $24,271.
Bitcoin-USD Perpetual Inverse Swap Contract
FXStreet analysts have identified that the development in Bitcoin price is bad for spot buyers. Analysts shared key price levels, and the steps to trade Bitcoin profitably in the current setup, in the video shared below:
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
