Bitcoin Price Could Rebound as Global Money Supply Grows Again, Wall Street Expert Predicts #CriptoNews

Bitcoin has faced significant price fluctuations in recent months, but according to veteran Wall Street investor Raoul Pal, the cryptocurrency could be set for a major recovery. Pal suggests that Bitcoin’s price may soon rise as the global money supply—specifically the M2 money supply—begins to expand again. This scenario is reminiscent of what happened in 2016, when Bitcoin experienced a massive price surge after the money supply grew.

Pal, who founded Global Macro Investor, has been following global financial trends closely. He believes that the pattern seen in 2016 could repeat itself, leading to a strong rebound for Bitcoin in the near future. Here’s why Pal is optimistic about Bitcoin’s future, despite the current market turbulence.

Understanding the M2 Money Supply and Bitcoin’s Relationship

The M2 money supply is a measure of the total money circulating in an economy, including cash, checking deposits, and other easily accessible funds. Over the past two years, the global M2 money supply has been shrinking, causing some to worry that Bitcoin may not have enough liquidity to maintain its price gains.

However, Pal reassures investors that the decline in the money supply is likely temporary. He points out that the current situation is similar to what happened in 2016. Back then, Bitcoin’s price was closely linked to the growth of the M2 money supply. As the global money supply expanded, Bitcoin’s price followed suit, experiencing a significant rise.

Pal predicts that this pattern could play out again. He suggests that as the global M2 money supply grows, Bitcoin could see a sharp recovery. While he acknowledges that Bitcoin’s price may dip temporarily, he believes that the long-term outlook remains positive.

Bitcoin Price Recovery Could Follow 2016 Pattern

Pal has drawn comparisons between Bitcoin’s current price movements and the trends of 2016. He shared a chart showing how Bitcoin’s price rose during that time after the M2 money supply expanded. Pal believes that while the price won’t follow an exact replica of the 2016 pattern, it will likely follow a similar trajectory. In other words, Bitcoin may dip to around $70,000 before bouncing back and continuing its upward trend.

In a recent statement, Pal encouraged investors to remain calm, despite the recent price corrections. He said, “It’s all going to be just fine. Maybe a bit lower or maybe it’s done already. Either way, higher over time.” Pal’s confidence in Bitcoin’s long-term growth is rooted in his belief that the global money supply will eventually expand again, providing the liquidity needed to support Bitcoin’s price.

Bitcoin’s Role in an Inflationary World

Another factor contributing to Pal’s optimistic outlook is the potential for inflation in the global economy. With inflation rising in many countries, Bitcoin is increasingly being seen as a hedge against the loss of purchasing power. Some experts, like Chris Kuiper from Fidelity Digital Assets, have even compared Bitcoin to “gold on steroids,” meaning it could outperform traditional assets like gold during times of inflation.

Kuiper notes that Bitcoin could follow the same path as gold did in the 1970s, when inflation spiked. In this scenario, Bitcoin would likely see significant price gains as more people turn to it as a store of value. This trend could accelerate if the global economy faces stagflation—a period of high inflation and low economic growth.

Volatility and the Upcoming CPI Report

Despite the optimistic outlook, Bitcoin’s price remains volatile. As of now, Bitcoin is trading at around $94,000 after dipping below $92,000 earlier. Analysts are closely watching the U.S. Consumer Price Index (CPI) report, which will be released on January 15. This report could cause further price fluctuations in the short term, as investors react to the latest inflation data.

Bitcoin has already corrected by more than 15% from its all-time high, and many experts are warning that it could fall further before recovering. However, Rekt Capital, a well-known crypto analyst, believes that Bitcoin is currently testing important support levels. If Bitcoin can hold above the $91,000 range, it could avoid a deeper decline and potentially start its recovery.

Conclusion: Bitcoin’s Long-Term Outlook Remains Positive

In conclusion, while Bitcoin’s price may experience some short-term volatility, the long-term outlook remains bright. Raoul Pal’s analysis suggests that as the global money supply expands, Bitcoin could follow the same pattern seen in 2016, leading to a significant price rebound. Investors are advised to stay patient and avoid panicking over temporary dips, as Bitcoin’s growth potential remains strong.

With Bitcoin’s role as a hedge against inflation becoming more prominent, and with the global economy likely to see more money supply expansion in the future, Bitcoin could continue to rise in the coming years. For those who can weather the short-term volatility, Bitcoin’s future remains promising.

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