Ex-Goldman Executive Warns Economy Is About To Drop Off a Cliff – Here’s What It Means for Crypto

Real Vision CEO Raoul Pal thinks crypto has “probably bottomed” and that the biggest macro influence on crypto is the global money supply.

In a new video, Pal predicts economic growth will soon fall “off a cliff,” which will spur an increase in the money supply.

The former Goldman Sachs executive shares a chart comparing the ISM Manufacturing Index and the US M2 Money Supply year ten year.

“In this chart, ISM is inverted and the money supply looks like it should start bottoming out and going higher. If it goes higher, crypto should go with it. Now, that makes sense because as economic weakness comes, the central banks start coming into play, liquidity starts being pushed into the system.

We’re already seeing it in China, that’s probably picking up the money supply growth already. But I think we’ll see it globally. So, that becomes interesting.

The US dollar situation, maybe we see swap lines, that helps money supply. So, I think we’re going to see the turn in money supply. So, that’s the macro for crypto improving as growth goes slower. It’s kind of counterintuitive, because you think, well, if growth’s slow, then crypto is going to be bad. It’s the opposite. As growth slows down, bond yields fall, inflation falls, money supply starts increasing, crypto starts doing well.“

M2 is a measure of the current money supply that takes into account cash, checking/savings deposits, money market securities and other easily convertible assets. The ISM Manufacturing Index is viewed as an indicator of the health of the US economy.

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Check Price Action

Follow us on twitterFacebook and Telegram

Surf The Daily Hodl Mix

Check Latest News Headlines


Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/MR_CHAMU/baldezh

Leave a Comment

Your email address will not be published.