Economy Specialist and Investor Raoul PalBitcoin $105,062.89(BTC) has attributed most of the price movement in the last two years to a single factor. According to PAL, the increase in global money supply (m2) increases the performance of the largest crypto currency and this relationship makes all other news “noise”. He also expressed the view that Anthony Pompliano Bitcoin might be “new bonds ..
How does the increase in global money supply affect the price of bitcoin?
Raoul Pal, Founding Partner and Macroeconomic Specialist of Real Vision, through the official X account shared In the last two years with a graphic BitcoinHe revealed the correlation between the price movement and the growth of global money supply (m2). Pal, in 2023, Bitcoin’s increase in global liquidity since the period of over 40 thousand dollars (trillions of dollars injected into the economy) raised M2. Bitcoin priceHe showed that he closely followed this increase.
According to Pal’s analysis, 89 percent of the Bitcoin price movement can be explained by this correlation. For this reason, Pal, “Due to the definition, almost all ‘news’ and ‘narratives are’ noise,” he said. Pal also believes that Bitcoin has reduced the value of the US dollar.
Towards the end of the week, with the increasing geopolitical voltage in the Middle East, Bitcoin fell to 103 thousand dollars by decreasing over 4 percent over $ 108,000 in a few hours. The largest crypto currency rises over 105 thousand dollars with partial recovery, but a wavy course continues.
Possibility of Bitcoin to be new bonds
Famous Angel Investor and Bitcoin supporter Anthony Pompliiano Bitcoin believes that Bitcoin is “new bonds” in a sharing today. stated. “When this concept is accepted, everything starts to make more sense,” Pompliano said. This view coincides with the idea of “bittahviller” (Bitbonds) in a Forbes article published in April.
Forbes article US treasury bondsHe claims that it can be supported with Bitcoin. In such a case, some of the bond revenues argue that interest costs may decrease as Bitcoin will be bound to 21 million units.
Article, US President Donald TrumpBitcoin declares a strategic reserve presence and Strategic Bitcoin ReserveFollowing the signing of an executive order to create i, Trump draws attention to the new economic orientation received by the administration. In this reserve, especially in connection with Silk Road, approximately 200,000 units used in illegal activities in the last few years and seized in operations carried out. BTC is.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
