A trader who rightly called the end of Bitcoin’s (BTC) bull market in 2021 believes the crypto king will rise rapidly again due to the inevitable return of money printing.
Pseudonymous analyst Pentoshi tells his 702,300 followers on the social media platform X that it is only a matter of time before the US government turns on the money printers again.
According to Pentoshi, Bitcoin will begin its parabolic rise once the US government decides to debase the dollar pay off the enormous debt burden of $33.523 trillion.
“If the printers come back to blow away the debt, and they always will. Remember, BTC is fundamentally the most difficult asset in the world, with both programmatic monetary policy and fixed supply. There is always another cycle.”
Looking at the trader’s chart, he sees Bitcoin rising to a new all-time high of $180,000, suggesting a move of about 570% from current prices.
Although Pentoshi believes there will be another bull cycle for Bitcoin, he thinks say that it is unclear when the Fed will start cutting rates.
“I really have no way of knowing when the tightening will end, and it could be years away. Or we could simply end up in years of stagflation.”
The crypto strategist also keeps a close eye on the Bitcoin vs. M2 money supply chart. M2 is a global liquidity indicator because it takes into account the amount of liquid money moving through the system. Crypto traders like Pentoshi believe that Bitcoin tends to unleash a bull market when M2 or global liquidity is on the rise.
The analyst shares a chart showing that Bitcoin vs. M2 appears to be gearing up for a major breakout.
At the time of writing, Bitcoin is trading at $27,855.
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Generated image: Midjourney