The cryptocurrency market is poised for an upward trend reversal in light of the growth in the money supply. This was stated on the Real Vision podcast by Raul Pal, a former Goldman Sachs executive and macro investor.

The expert emphasized that bitcoin is more dependent on the dynamics of the money supply (M2) than halving. If the first factor has influence, the second is optional.

“Digital assets are not tied to the business cycle, but their behavior is related to global liquidity flows. Currently, M2 has about one and a half standard deviations from the trend and is increasing”, He shared his observations.

The expert explained that the formation of the extremes of the macro indicator precedes the reversal of trends in the cryptocurrency market.

“Remember that Bitcoin is not a cyclical asset. It will not return to the state it was in, like oil or other commodities. It’s a network adoption pattern that grows over time with wide, variable ranges.” Friend explained.

Recall that Grayscale analysts allowed the completion of the crypto winter by the end of March 2023.

Earlier, Pal had predicted the Ethereum rate growth to the $20,000 level.

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