Bloomberg Intelligence analyst Jamie Coutts thinks crypto and blockchain technology are at the beginning of a “structural uptrend.”
Coutts says on the social media platform X that central bank liquidity, global M2, Bitcoin’s (BTC) price, crypto prices and crypto user count are all linked.
Global M2 is a money supply metric that measures peoples’ cash, checking accounts, and other types of deposits that are easily convertible to cash.
Says the Bloomberg analyst,
“The liquidity cycle bottomed in Q4 2022 as did users of smart contract blockchains. However, the liquidity cycle only impacts the rate of change of adoption. Consistently, blockchain adoption increases YoY (year over year), irrespective of asset prices.
Blockchain technology is in a structural uptrend that will last for many years, and we are at the start of the next cyclical upswing.”
Coutts also notes that Bitcoin is already a reserve asset for certain countries.
“Several energy-rich nation-states have invested hundreds of millions into facilities with projected investments of $1 billion-$2 billion and >2,000 megawatts coming online in a couple of years. These countries have publicly stated that Bitcoin mining is a strategic energy initiative. If that is true, then they are already holding BTC on their balance sheet.
The first of the sovereigns have arrived.”
At time of writing, Bitcoin is worth $37,574.
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