Huge 89% Reason for Bitcoin Rally Named by Raoul Pal Dwarfs All Others – Crypto News – Crypto News
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Huge 89% Reason for Bitcoin Rally Named by Raoul Pal Dwarfs All Others Huge 89% Reason for Bitcoin Rally Named by Raoul Pal Dwarfs All Others

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Huge 89% Reason for Bitcoin Rally Named by Raoul Pal Dwarfs All Others – Crypto News

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Crypto expert and investor Raoul Pal has taken to his official X handle to share with his followers a thought about a crucial factor that has been driving the Bitcoin price up in the past two years.

This factor has been driving Bitcoin up since the BTC was above $40,000 in 2023, according to the chart shared by Pal.

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89% of all Bitcoin price action was down to this, per Pal

Raoul Pal, a co-founder of Real Vision and a macroeconomic expert, published a chart that tracks down the correlation between Bitcoin price action observed over the past two years and the growth of the global money supply (M2).

M2 has been rising with the Bitcoin price following it closely as the global liquidity has been increasing with trillions of dollars getting printed and injected into the global economy. Pal stated that 89% of Bitcoin’s price action can be explained by this correlation, therefore, the expert added, “by definition almost all ‘news’ and ‘narrative’ is noise.” Bitcoin is debasing the U.S. dollar, Pal believes.

On Friday, the largest cryptocurrency plunged by more that 4% in a matter of hours, falling from above $108,000 to the $103,000 zone. Later, it rebounded by slightly more than 2% but another rollback took place. The Bitcoin price reacted to the escalating military tensions in the Middle East that took place at the end of the week.

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Bitcoin is new bonds, Pompliano says

Prominent angel investor who supports Bitcoin, Anthony Pompliano, tweeted today that he believes Bitcoin to be “the new bonds.” Once this concept is accepted, he said, “everything starts to make a lot more sense.”

His statement aligns with a Forbes article released in April this year, where “BitBonds” are mentioned. The article suggests that U.S. Treasury bonds could be backed by Bitcoin. This would potentially bring down interest costs since a portion of bond proceeds would be tied to Bitcoin’s hard-fixed 21 million supply.

This article stresses the new economic direction taken by the Trump administration after the U.S. president proclaimed Bitcoin to be a strategic reserve asset, signing an executive order to create a Strategic Bitcoin Reserve. It already holds almost 200,000 BTC confiscated from illicit activities in the past few years, particularly, from the Silk Road-linked ones.

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