Macro guru Raoul Pal says that digital asset markets could be gearing up for a major trend reversal to the upside if one main metric is any indication.
In a new market update on Real Vision, Pal says crypto markets are mostly driven by the liquidity that comes from M2 money supply.
M2 money supply roughly refers to the total amount of currency in circulation, plus near money, or highly liquid non-cash assets that can be easily converted to cash.
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While many crypto investors focus on the Bitcoin halving, which is when the amount of BTC issued per block reward gets cut in half, Pal says M2 likely plays a bigger role.
“Crypto isn’t driven by the business cycle, but it’s driven by global liquidity.