Bitcoin has emerged as a key “liquidity barometer,” correlating with global money supply trends, moving in the same direction as M2 money supply 83% of the time. Research indicates a strong correlation coefficient of 0.94, suggesting that as global liquidity expands, Bitcoin’s price typically rises, while it declines during liquidity contractions. Analysts predict a bullish outlook for Bitcoin prices as the M2 money supply begins to increase after a period of contraction, potentially signaling a crypto market bull run in the fourth quarter.
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0 posts last weekBitcoin’s Potential to Replace Central Banking System: Expert Analysis
Renowned macroeconomics expert Lyn Alden outlines steps for countries to transition to the Bitcoin Standard, emphasizing the need for gradual adoption due to Bitcoin’s current market size. Alden suggests measures such as adding Bitcoin to reserves, promoting local businesses involved with Bitcoin, and potentially making it legal tender. She anticipates that as the US faces fiscal challenges, institutions and nation-states may increasingly accumulate BTC, paving the way for broader acceptance of the Bitcoin Standard.
read morePotential Trump Victory and Global Liquidity Boost Could Benefit Crypto Markets
A potential Trump victory in the upcoming US presidential elections could lead to the extension of corporate tax cuts, favoring the crypto markets. Macroeconomist Lyn Alden argues that global liquidity recovery remains the most important factor affecting crypto markets, with expectations of Federal Reserve’s balance sheet growth driving Bitcoin’s price significantly higher.
read moreNvidia’s Surge and AI Tokens’ Decline: Market Sentiment and Potential Impact
Nvidia’s stock surge has impacted AI-linked crypto tokens, with some declining while the company’s shares soared. Despite the current trend, some traders anticipate a potential shift in AI token prices if Nvidia’s stock experiences a downtrend. However, experts believe that Nvidia is unlikely to outperform Bitcoin over the next decade.
read moreNvidia’s Outperformance of Bitcoin and AI’s Future in Question
Nvidia’s exceptional performance compared to Bitcoin over the past decade is unlikely to be repeated in the next ten years, according to crypto experts. While some remain optimistic about Bitcoin’s future, others warn of a potential significant correction in the coming years. The debate continues on the potential risks and returns associated with investments in Nvidia, Bitcoin, and the broader adoption of AI and financial assets.
read moreBitcoin’s Long-Term Impact on Financial System: Macro Guru’s Insights
Renowned macro guru Lyn Alden believes that Bitcoin’s journey to becoming a major asset class will span over a decade, emphasizing that technological disruption takes time. Despite Bitcoin’s current market cap being relatively small, Alden foresees it gradually encroaching on the market share of established assets like savings accounts and sovereign bonds. She anticipates resistance from nation-states but envisions a transformative impact on how payments are made and where value is stored over the long term.
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