It seems that the optimistic Bitcoin-related predicitons continue these days. Check out the latest reports about the matter below.
Bitcoin-related optimistic predicitons continue
Real Vision’s CEO, Raoul Pal, believes that the recent surge in Bitcoin’s value is a result of the global liquidity cycle. In his analysis, the former Goldman Sachs executive explains how he sees the connection between cryptocurrency and the traditional macroeconomic framework.
Pal presents a chart comparing the ISM (their preferred business cycle indicator) to what Bitcoin is currently discounting in terms of its position in the cycle.
The chart shows that the two are closely correlated, and Bitcoin is even leading, as expected.
The ISM manufacturing index is an important indicator of economic activity in the United States.
Pal also considers global M2, which is a metric used to measure the amount of money in circulation that can be easily converted to cash such as cash in hand, checking accounts, and other types of deposits.
According to Pal, the rise of Bitcoin over ISM is due to the increase in the liquidity cycle, which hit rock bottom last year and is now rising year-on-year.
This is the reason for the significant rise in the value of cryptocurrencies and tech stocks this year. All of this is due to the increase in liquidity.
Bitcoin network fees explode
In November, there has been a significant surge in the network fees of Bitcoin (BTC) due to a high demand for ordinals which are flooding the blockchain.
According to data from CryptoFees.info, the transaction fees of BTC have increased by 1,391% from $779,549 at the start of the month to a peak of $11.63 million on November 17th.
Although there has been a slight decrease, the fees are still hovering around the $11.559 million mark.
Users can use Bitcoin ordinals to create non-fungible tokens (NFTs) by inscribing digital assets such as images and videos with a single satoshi or an individual unit of BTC on the cryptocurrency’s network.
