19 June 2024

Macro Indicators Suggesting Bitcoin Rallies Just Getting Started, According to Ex-Goldman Sachs Executive

0

Real Vision CEO Raoul Pal thinks Bitcoin’s (BTC) rally is all about the global liquidity cycle.

In a new analysis, the former Goldman Sachs executive lays out how he believes crypto is tied into the traditional macroeconomic framework.

“Below you will find a chart of ISM (our preferred barometer for the business cycle) versus what Bitcoin is currently discounting in terms of where we are in the cycle. As you can tell, the two are very closely correlated and Bitcoin is even leading as you would expect…”

Source: Raoul Pal/Substack

The ISM manufacturing index is an indicator of US economic activity.

Pal also looks at global M2, a money supply metric that measures peoples’ cash, checking accounts, and other types of deposits that are easily convertible to cash.

“The fact that Bitcoin has a lead over ISM is being driven by the turn higher in the liquidity cycle, which bottomed last year and continues to rise in year-on-year terms. This is why we have seen such a face-ripping rally in crypto and tech stocks year-to-date: it’s all down to a turn higher in liquidity…”

Source: Raoul Pal/Substack

Pal believes the liquidity cycle bottomed in October 2022 and says his models “suggest an upward trajectory well into 2024.”

Source: Raoul Pal/Substack

At time of writing, Bitcoin is worth $37,581.

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Check Latest News Headlines

 

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: DALLE3

Go to Source

About Post Author

Leave a Reply