Raoul Pal: M2 Money Supply Growth Could Fuel Cryptocurrency's Next Bull Market

[Lemon]

Raoul Pal, former Goldman Sachs executive and founder of the macro research firm Real Vision, believes that the increase in M2 money supply could drive another bull market for cryptocurrencies, helping them outperform traditional markets. As the M2 money supply continues to rise, the price of Bitcoin appears to be on the cusp of decoupling from traditional markets, a pattern seen in its surges in 2021, 2017, and 2014.

Over the past decade, rapid growth in the money supply (M2) due to declining interest rates, quantitative easing, and fiscal stimulus has led to significant increases in Bitcoin's price. Conversely, during periods of central bank tightening of monetary policy, the cryptocurrency market has struggled to gain bullish momentum. In 2021, the bull market coincided with a 6% or higher increase in the total M2 money supply by the Federal Reserve, the European Central Bank, the Bank of Japan, and the People's Bank of China.