The selling pressure on Bitcoin (BTC) might be diminishing as its price has rebounded above the $94,962 mark, having briefly dipped to approximately $91,300 earlier today. This bounce back occurred amid a 24-hour volatility of 1.7%, with a market cap of $1.88 trillion and a 24-hour trading volume of $62.06 billion.
Based on the insights of seasoned Wall Street investor Raoul Pal, we can anticipate further growth in Bitcoin’s value moving forward, despite the ongoing expansion of global M2 money supply.
Experts Warn that Significant Bitcoin Price Decline May Be Coming
Currently, questions arise about whether the price of Bitcoin will mimic its behavior from 2016, when it aligned with the growth of the global M2 money supply.
On the other hand, since the worldwide M2 money supply has decreased for the past two years, some investors express concerns that Bitcoin could follow suit and see a decline as well. For numerous reasons, it’s questioned whether Bitcoin possesses adequate liquidity to maintain its price surge.
Although he shares a different perspective, Raoul Pal, the founder of The Global Macro Investor, asserts that there’s no need for investors to worry over the latest market fluctuations.
According to Pal, the worldwide financial graphs show they’re similar to how they were back in 2016/17, implying that a robust economic growth phase seems to be firmly in progress.
While investors generally agree that the global money supply is primed for growth given its reduction over the past two years, they are worried that Bitcoin’s price hasn’t dropped enough during this time to suggest a significant trend change.
Over an extended period, Bitcoin’s price has generally mirrored the trend of M2 money supply. Consequently, some financial analysts anticipate that Bitcoin might decline to approximately $70,000 before experiencing a robust rebound.
Market Movement Shows Semblance to Global M2 Expansion 2016/17, Pal Insists
Despite some market concerns seeming valid, Pal remains unperturbed, as he observes Bitcoin’s current movements mirroring those from 2016. He has gone ahead to provide supporting charts and made a statement asserting this similarity.
Everything will turn out well in the end. It might dip slightly or have already peaked, but it’ll rise again eventually. There won’t be an exact replica, but a similar outcome. The afterlife is calling. Just remember to stay focused and not make any mistakes.
Currently, it seems that traders are not overly optimistic about the market, possibly leading to a decrease in Bitcoin open interest. This could indicate that traders might be liquidating their positions. According to Glassnode, the 30-day Simple Moving Average (SMA) is slightly decreasing, while the 7-day SMA has dropped below it, suggesting a short-term downward trend and a potential mid-term decline.
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2025-01-10 12:36