In a recent revelation, Bill Barhydt, the founder and CEO of crypto-banking platform Abra, sparked discussions in the Crypto-X community by sharing a series of M2-versus-Bitcoin charts. These charts were originally brought to light by macro investor Raoul Pal and research analyst Julien Bittel.
Barhydt stated, “I’ve viewed numerous posts presenting diverse renditions of the global liquidity M2 vs Bitcoin price chart – I’ve shared a few here. Kudos to @RaoulGMI and @BittelJulien for identifying this pattern.”
Most of these charts anticipate a slight decline in the next few days, followed by a surge to a record high of $130,000 by August or September. Barhydt, however, emphasized that these predictions could be entirely off the mark.
Barhydt opined that the global liquidity needs to increase significantly in the coming months. As the fiat supply grows, Bitcoin absorbs the surplus, leading to gains that will likely spill over to other L1 platforms and subsequently to speculative altcoins – the so-called ‘alt season’.
Despite this, he warned traders against complacency, suggesting that they should be prepared for a potential short-term downtrend to $95,000 before any substantial rally takes place.
When confronted with the concern that the model might be saturated, Barhydt dismissed the notion, stating, “Even though thousands might be examining this, the majority of retail investors aren’t focusing on crypto currently.”
Another critique suggested that the liquidity data is not collected frequently enough to predict daily movements. Barhydt agreed, but asserted that it serves as a solid tool for predicting macro trends on a weekly scale.
With the global M2 nearing a record $111 trillion, experts like Pal and Bittel believe Bitcoin is set to climb further. Whether Bitcoin will reach Barhydt’s $130,000 target or not will depend on the pace at which central banks increase their balance sheets and how traders leverage in the coming weeks.
As of now, Bitcoin is trading at $104,625.
