Investing.com | Editor Rachael Rajan
Published Nov 21, 2023 04:58PM ET
The recent surge in Bitcoin’s value, now standing at $37,581, has been tied to a global uptick in liquidity, according to former Goldman Sachs executive Raoul Pal. He asserts that this trend is set to continue into 2024 and points to the ISM index, commonly used to predict economic cycles, as evidence that Bitcoin could be an early indicator of broader economic movements.
Pal’s analysis aligns the current boom in technology equities and cryptocurrency valuations with the year-over-year enhancements observed in the global M2 money supply—encompassing cash and other liquid assets. The M2 money supply, which “bottomed” last year, is a critical factor in understanding the market surges happening today.
While Pal draws on his expertise from his tenure at Goldman Sachs to provide a macroeconomic perspective on these trends, it is emphasized that his insights should not be construed as investment advice. This caution comes alongside reminders about email alert subscriptions and disclosures of affiliate marketing participation by the platform presenting his analysis.
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Written By: Investing.com
