Raoul Pal, one of the leading managers at Goldman Sachs, believes that shortly, the crypto market will be reversed in the direction of growth.
According to the expert, this is because the cost of bitcoin is not affected by the decrease in the emergence rate of new coins but by the dynamics of the money supply. The expert believes that, in fact, halving is unnecessary if the influence of the second point is observed.
Global liquidity flows impact digital assets more than business cycles. We can see one and a half standard deviations in the divergence of money supply dynamics from the trend now. And this indicator continues to grow.noted Pal.
According to Pal, the reversal of the market trend was preceded by the formation of extremums of the macro indicator. The expert noted the fact that BTC cannot be considered a cyclical asset, and it makes no sense to wait for the price to return to its initial state.
Bitcoin is not oil or gold or any other commodity. We shouldn't expect a return to the previous indicators.the expert said.
It is worth noting that on July 20, the price of bitcoin managed to exceed the level of 24 thousand dollars per coin. This is the best performance of the cryptocurrency since early summer 2022. Now bitcoin is trading at 21 thousand apiece, but experts note positive growth compared to the cryptocurrency’s decline in an earlier period.
As for trading, all cryptocurrencies from the top ten finished the week in the green zone. Ethereum demonstrated the best performance, with a 17.5% increase in price over the past week. Later there was a 4% decline, and now the coin is trading at $1,527 apiece.
Concerning the market capitalization, it exceeded a trillion dollars with the bitcoin dominance index of 39.9%.
