Rising M2 money supply will see crypto become 'supermassive black hole': Raoul Pal
Historically, the cryptocurrency market has benefited from the rise in global money supply as the majority of the bull runs in the past coincided with the rise in fiat supply.
The rising M2 money supply could propel crypto into another bull rally and help it outperform the traditional markets, according to Raoul Pal, co-founder and CEO of financial media platform Real Vision. Pal’s X post highlighted the correlation between the rising fiat market supply and the start of the crypto bull run.
Pal, in an X( formerly Twitter) post, shared a graph comparing Bitcoin’s (BTC) yearly performance against the global M2 money supply, indicating the simultaneous rise of Bitcoin and global M2 supply. Historically, the Bitcoin and cryptocurrency market has started outperforming the traditional financial market with a rise in global M2 supply.
The chart above shows that Bitcoin’s price is on the verge of decoupling from the traditional market with a rising M2 supply, which has been the case historically, evident from the spike in BTC’s performance in 2021, 2017 and 2014.
Pal said he “loves Global M2...