Macro crypto trends are analyzed to understand the momentum of the market; many crypto analysts have chipped in with their own thoughts and opinions about how a huge macro reversal for the crypto market might take place. Among those is Raoul Pal, a former executive of Goldman Sachs who has profoundly directed that a macro reversal for the crypto market might be in effect if a particular metric is to be taken as an indication.
Liquidity is the Driver of Bullish Trends
It goes without saying that any financial market is driven by liquidity, and according to Pal, the crypto markets are mostly influenced by the liquidity which comes from the M2 money supply. This phenomenon represents the total amount of crypto that is presently in circulation plus the non-cash assets that are highly liquid, which means that these can be converted into cash whenever the need to do so arises.
Bitcoin halving is a concept many crypto investors look towards, which represents the total amount of per block reward getting slain into half. According to Pal, people should just forget about Bitcoin halving at the moment and look towards M2 as it is going to play a much bigger role in analyzing the major crypto trends towards an upheaval of the crypto market.
Global liquidity, according to Pal, has a much more significant role to play here than Bitcoin halving or any other such metric. If there are any changes in this particular metric, the overall dimensions and momentum of the crypto market will also shift accordingly.
Halving may not be required as a necessary precursor because even if halving is taking place, there is no stopping the change in the overall supply of the said token because it is going to be tied with a predefined element that states that either the supply is infinite or is it finite. Therefore, a much more prominent metric to diagnose and examine here would be the M2 supply rather than Bitcoin having, if global liquidity is to be taken into account.