Bitcoin, the leading cryptocurrency, has recently surged past $94,000, attributed partly to increased global money supply despite various market conditions.
Impact of M2 on Bitcoin Price
Recent declines in the global M2 money supply have raised concerns about its role in supporting Bitcoin’s price. This has renewed interest in the historical relationship between Bitcoin price movements and M2 supply changes.
Market Fluctuations and Risks
Raoul Pal, founder of Global Macro Investor, urges traders to remain calm despite recent market fluctuations. He noted, 'The global money supply mirrors charts from 2016-17 and may soon see significant growth.'
Forecast and Expert Opinions
Fidelity Digital Assets’ Chris Kuiper expressed concerns regarding potential stagflation in the U.S. economy, reminiscent of the 1970s. He posits that in such an environment, Bitcoin could significantly outperform gold.
The outlook for Bitcoin's price will likely hinge on changes in global money supply. Traders should consider economic indicators and expert insights in navigating market volatility.
