The recent surge in the value of bitcoin, which now stands at $37,581, has been linked to a global increase in liquidity, according to former Goldman Sachs executive Raoul Pal. He claims this trend will continue through 2024 and points to the ISM index, commonly used to predict business cycles, as evidence that bitcoin could be a leading indicator of broader economic movements.
Pal’s analysis correlates the current boom in technology stocks and cryptocurrency valuations with year-over-year increases in the global M2 money supply, which includes cash and other liquid assets. M2, which “bottomed out” last year, is a critical factor in understanding today’s market surges.
While Pal draws on his expertise from his tenure at Goldman Sachs to provide a macroeconomic perspective on these trends, he emphasizes that his insights should not be construed as investment advice. This caveat is accompanied by reminders about email alert subscriptions and disclosures of affiliate marketing participation by the platform presenting his analysis.
