Bitcoin Price Recovers Above $94,000 Amid Market Concerns
Bitcoin's price has recovered above $94,000 after dipping to around $91,300. Raoul Pal suggests further recovery is likely despite concerns over the Global M2 money supply.
Potential Price Decline Concerns
Worries exist that Bitcoin may follow its 2016 pattern in relation to the Global M2 money supply, which has been declining for the past two years. Key points include:
- Investors are anxious about Bitcoin's liquidity during a rally.
- Pal believes recent market movements should not cause alarm.
- Current conditions mirror the M2 supply situation of 2016/17.
Market experts suggest Bitcoin may need to drop to $70,000 before a notable recovery can occur.
Market Trends Compared to 2016/17
Pal argues there is no reason for concern, stating Bitcoin's price movements resemble those of 2016. He shared charts and stated:
“It’s all going to be just fine. Maybe a bit lower or maybe it’s done already. Either way, higher over time...”
Trader confidence appears low, indicated by a decline in Bitcoin's open interest. Glassnode reports a downturn in both mid-term and short-term trendlines.