Raoul Pal, CEO of Global Macro Investor, drew attention to the connection between M2 money supply and Bitcoin (BTC), signaling that the price could rise much higher.
Many analysts predict that Bitcoin in particular will make a strong upward move in October. It is thought that this rise could be triggered by the interest rate cut decision expected at the US Federal Reserve (Fed) meeting on September 18.
Macroeconomic developments may benefit BTC
Raoul Pal, founder and CEO of Global Macro Investor, says that increasing global liquidity could trigger the next Bitcoin bull rally. According to Pal, leading economies will be forced to refinance their debts, leading to an increase in global liquidity in the US, Japan, China, and Europe.
“As global liquidity increases, cryptocurrencies and other markets like Nasdaq will also rise. Global M2 money supply has also started to rise,” Pal said in a video he published on the X platform. Given that the Bitcoin price is highly correlated with M2 money supply, some of this increased liquidity could flow into Bitcoin and trigger the next rally in the 2024 cycle.
Pal then shared another post showing the relationship between M2 money supply and Bitcoin price. Noting that there is a very close connection between the two, he expects the BTC price to rise even more.
Stay tuned for new information.
