Crypto expert and investor Raoul Pal shared his observations on the influence of global liquidity on Bitcoin's value, asserting that almost all price changes are tied to increases in the money supply.
Bitcoin and Global Liquidity
Raoul Pal, co-founder of Real Vision and macroeconomic expert, presented a chart showing the relationship between Bitcoin's price and the growth of the global money supply (M2) over the past two years. According to his findings, 89% of Bitcoin's price fluctuations can be explained by this correlation. Pal noted that 'almost all news and narrative is noise', contending that Bitcoin is acting against the debasement of the US dollar.
Anthony Pompliano's Opinion on Bitcoin as New Bonds
Prominent angel investor Anthony Pompliano also shared his views on Bitcoin. In his tweet, he stated that Bitcoin is 'the new bonds', suggesting that once this is accepted, 'everything starts to make a lot more sense'. His opinion aligns with a Forbes article discussing the idea of US Treasury bonds potentially being backed by Bitcoin, which could lower interest costs due to Bitcoin's fixed supply of 21 million.
Recent Bitcoin Price Fluctuations
Last week, Bitcoin experienced a sharp decline of over 4%, dropping from above $108,000 to the $103,000 zone. It later slightly rebounded, but another price rollback occurred in response to escalating military tensions in the Middle East.
Raoul Pal's insights on the relationship between Bitcoin prices and global liquidity highlight the significance of macroeconomic factors in cryptocurrency pricing. Other experts like Anthony Pompliano also suggest that Bitcoin could play an important role in modern finance.
