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
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.
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.
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.
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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:
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Ripple's General Counsel has criticized the SEC's tactics of regulatory clarity through rulemaking, arguing instead for an urgent need for crypto legislation from lawmakers in Washington.
Cardano price is ready to take a U-turn after July 27’s rally as indicators display a clear trend reversal. Investors need to wait for a confirmation before triggering their short positions for ADA.
Chainlink price shows an interesting setup with liquidity resting on both ends. This makes it hard to discern the next move, but under some conditions, the volatility seen on LINK can be taken advantage of.
Litecoin price shows ambition in reaction to the Fed’s interest rate decision. A bullish engulfing candlestick is one hour away from settling as the New York Session comes to end.
Bitcoin price has noticed a large shift in sentiment from being overly bearish to optimistic. Although greed is still out of the equation, things could soon reach these levels, especially if the trend continues as it has over the last ten days.
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