Veteran Wall Street investor Raoul Pal predicts a Bitcoin price rebound when the global M2 money supply grows, similar to 2016-17.

Bitcoin has regained over $94,000 after reaching a new low of $91,380 earlier today, as selling pressure on the world’s largest cryptocurrency eases marginally. Veteran Wall Street investor Raoul Pal believes the Global M2 Money supply will rise again, resulting in a major rebound in BTC from here on out.

Will Bitcoin price follow Global M2 expansion similar to 2016-17?

The global M2 money supply has been declining over the previous two years, prompting speculation that Bitcoin lacks sufficient liquidity support to sustain its price surge.

Raoul Pal, founder of Global Macro Investor and a Wall Street veteran, advised investors not to worry about recent market moves. He stated that global money looks just like the 2016-17 charts and might see a substantial expansion in the future.

However, investors are concerned that, while the global money supply has dropped over the previous two years, the Bitcoin price has not retraced sufficiently to signal a trend reversal. For some years, BTC has continuously monitored the M2 supply. Thus, if this pattern repeats, we might witness a decline to $70,000 before the upswing resumes. Given the impending economic headwinds, some market analysts have already raised this prospect.

BTC follows 2016 pattern

However, Pal addresses this fear mongering by demonstrating that the Bitcoin price is moving in the same direction as it did in 2016. Pal shared a graphic comparing the current Bitcoin movement and the 2016 trend, writing:

“It’s all going to be just fine. Maybe a bit lower or maybe it’s done already. Either way, higher over time. Don’t expect an exact repeat but a rhyme. Valhalla waits. Don’t Fuck This Up”.

Bitcoin will be gold on Steroids

Chris Kuiper, Director of Research at Fidelity Digital Assets, has stated that the US economy may see a stagflation-like environment comparable to the 1970s. The analysis draws comparisons between the present economic condition and 1977, forecasting an increase in inflation over the following three years.

However, Kuiper believes that Bitcoin can play an important role in this situation, operating as “gold on steroids”. According to historical statistics, Gold and CPI witnessed considerable increases in the three years following January 1977. According to Fidelity, this time we might witness a Bitcoin price rise that follows this trend.

Bitcoin price volatility ahead?

Investors are bracing for BTC price volatility ahead of the US Consumer Price Index (CPI) data, which is due next week on January 15. With Bitcoin now down more than 15% from its all-time highs, it is trading near a critical support level. Rekt Capital, a famous cryptocurrency analyst, commented on the recent price movement, saying:

“Bitcoin has dwindled to pretty much the very bottom of its $91000-$101165 range. Needs to hold the $91k Range Low as support (blue) to avoid further downside and actually deepening this multi-week corrective period”.

As analysts forecast a BTC price rebound, Bitcoin open interest indicates a reduction in speculative enthusiasm. “The mid-term trendline (30-day SMA) peaked and is presently modestly decreasing, while the short-term trendline (7-day SMA) has slipped below it. This suggests that traders have been closing positions in reaction to uncertain market circumstances,” Glassnode said.

Ethereum price today: Whales buy 25K ETH as crypto market crashes

Investigate if Ethereum’s price today is poised for a rebound as whales acquire 25,000 ETH despite a crypto market crisis, with objectives set for January 2025.

Ethereum (ETH) has lost roughly 16% of its value this week as Bitcoin (BTC) fell from $100,000 on Tuesday to a retest of $92,000 in the late New York session on Thursday. Despite the recent crash of BTC and other cryptocurrencies, whales appear to be taking advantage of the instability to collect 25,000 ETH. What happens next? A market bottom, followed by a rise or collapse in the value of Ethereum? Let’s go exploring.

Ethereum price today: ETH is up -1.50%

Ethereum (ETH) is now trading at $3,269.9 as of 6 a.m. Although the token exhibited strength toward the end of 2024, it has plummeted approximately 16% since Monday of this week. Whales and top holders took advantage of the crash, accumulating around 25,000 ETH. On January 10, the price of ETH fell by 1.50% from its daily high of $3,271.51.

Ethereum Whales accumulate 25,000 ETH after recent crypto market crash

According to Santiment, the quantity of ETH held on exchanges has declined from 10.67 million on January 7 to $10.42 million today. Approximately 25,000 coins were moved off centralized systems, demonstrating confidence and implying that long-term holders anticipate a price increase. Interestingly, the same data indicates that top holders’ (other than exchanges) balance climbed by 25,000, which is a clear indicator of accumulation by whales.

High net worth investors, or whales, often have more than $100,000 in money. Transactions worth more than $100,000 surge after a rally, indicating that these whales are eager to book profits. As a result, an increase in the number of whale transactions following a rise is sometimes seen as a sell signal. However, an increase in such transfers following large falls frequently implies consolidation from these investors and the market’s bottom.

During the late Thursday drop, whale transactions worth more than $100,000 and $1 million increased significantly, lending support to our theory of an accumulation by savvy investors.

Is the bottom in yet?

With such overwhelming proof of savvy money accumulation, ordinary investors must be prepared for a possible reversal. This rebound rally and restart of the bull run will take place if Bitcoin bottoms. As previously said, the January 9 swing low of $91,151 might be the bottom. If BTC drops lower and forms a bullish swing failure pattern at $90,835, it might indicate a reversal.

As a result, Ethereum may be approaching a stable bottom, which might spark a bull movement.

Is Bitcon Bottom In? Most likely.

January 9’s swing low ($91,151) could be the bottom. If not, then a sweep of $90,835 with a bullish swing failure pattern could suggest that a bottom is imminent.
https://t.co/H2Spj0mvEM pic.twitter.com/ohZ0zmlIsB

— MAXPAIN (@Mangyek0) January 10, 2025

Ethereum price analysis and strategic targets for January 2025

On the daily chart, an inverse head-and-shoulder configuration is forming on Ethereum. This configuration indicates a bullish reversal and the conclusion of a downtrend or consolidation. It has three separate bottom forms, the central one being lower than the other two, indicating the head. While the ones on either side of the head are referred to as shoulders. Hence the namesake.

In this scenario, the technical pattern predicts a 44% rally to $5,825, calculated by adding the head’s depth to the breakout point of $4,000. However, investors might anticipate the bull run to restart if Bitcoin finishes its current slump by creating a bottom on January 9 or 10. In this scenario, Ethereum might surpass $5,825 and perhaps reach the psychological milestone of $6,000 before January 2025 ends.

Some key support levels include $3,278; $3,029; $3,000 and $2,739.

While the inverse head-and-shoulder pattern is bullish, it must finish developing before a breakout can be considered. As a result, some critical resistance levels that the Ethereum price must overcome are $3,600, $3,843, and $4,000.

Ethereum price predictions for January 2025 include crucial levels for investors to record profits at $4,500, $5,000, $5,500, $5,825 and $6,000.

However, a breakdown of the $3,029 support levels will render the inverted head-and-shoulder configuration indicated above useless. Such a situation might drive ETH down to $2,800 or lower levels.

To summarize, despite Ethereum’s recent 16% dip, whales took advantage of the volatility to amass 25,000 ETH. Strong evidence supports prudent money accumulation, which ordinary investors should monitor and prepare for a future reversal. The aim for Ethereum in January 2025 is a local top formation at $5,825 or $6,000.

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