Billionaire venture capitalist Chamath Palihapitiya says staying bullish on the markets will pay off, pointing to two key financial factors driving his conviction.

In a new episode of the All-In Podcast, Palihapitiya takes a close look at the M2 money supply chart, which has been on the up and up.

The billionaire notes that M2 growth is one of the key reasons why the S&P 500 is in the midst of a strong uptrend.

“If I was a betting man… I think the free money trade here is to be levered long. I think you can make a lot of money right now. Why is that? The first chart I want to show you is the velocity of money… This is the M2 money supply. It’s a measure of how much money is circulating in the economy. 

What this shows is the impact of rates, where we were able to start to slow down and contract the money supply. But then as the economy stabilized and people started to project what was possible in 18 to 24 months, you started to see money coming back into the system. That’s what has given a bid to the equity markets.”

The billionaire is also keeping a close watch on the amount of money invested in money market funds, which are financial instruments that provide yields that are largely influenced by the prevailing interest rates set by the Federal Reserve.

Palihapitiya says that once the Fed starts cutting rates, trillions of dollars in capital stashed in money market funds will likely be invested in the stock market.

“Look at how much money is sitting in money market funds, and what this starts to show you is you have trillions of trillions of dollars of dry powder in the sidelines that will need to find a home. 

I think that [Fed chair] Jerome Powell is in an increasingly [untenable] situation because he will be looked at as politicizing the office of the Federal Reserve. There is enough data that can justify cutting rates. If you cut rates, two things will happen. 

Number one is people will take some amount of money out of the money market funds because they will want to go and seek superior returns somewhere else. It will increase the velocity of money at the same time. You put those two things together that is a bid to the equity markets.

And so if we’re at an all-time high today with rates at 4.5% and Powell’s back is against the wall to cut, the only road from here is probably up…

I think if Powell starts an aggressive cutting program… you could see the S&P 500 at 7,000.” 

As of Monday’s close, the S&P 500 is trading at record-high levels of 6,204.

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Amin Ayan

Crypto Journalist

Amin Ayan

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Amin Ayan is a crypto journalist with over four years of experience in the industry. He has contributed to leading publications such as Cryptonews, Investing.com, 99Bitcoins, and 24/7 Wall St. He has…

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June 22, 2025

Samson Mow, founder of Bitcoin infrastructure firm Jan3, is eyeing France as a potential leader in Bitcoin adoption at the nation-state level following a recent meeting with French lawmaker Sarah Knafo.

Mow met with Knafo at the BTC Prague conference this week, where the two discussed plans to build a strategic Bitcoin reserve for France and explore regulatory frameworks favorable to Bitcoin.

After the meeting, Mow posted on X, saying he was “looking forward to starting a nation-state Bitcoin adoption wave in France and perhaps all of Europe.”

Pro-Bitcoin EU Lawmaker Knafo Echoes Support for Nation-State Adoption

Knafo, a member of the European Parliament with openly pro-Bitcoin views, echoed the enthusiasm.

“France must take hold of these issues,” she wrote on X. She described Mow as “an expert on Bitcoin adoption by states, who has advised the President of El Salvador and many others.”

Mow left Blockstream in 2022 to focus on helping governments integrate Bitcoin into their financial strategies.

Knafo also met with Michael Saylor, executive chairman of MicroStrategy, calling him “visionary and ambitious.”

She hinted at more developments ahead, saying, “We will soon have many projects for France and Europe.”

France is already taking steps in both public and private sectors. On June 3, Paris-based Blockchain Group announced the purchase of 624 BTC for €60.2 million, bringing its total holdings to 1,471 BTC.

In March, state-owned bank Bpifrance allocated €25 million to crypto-related investments.

Still, Europe faces criticism for its slow pace. While the EU’s MiCA framework was fully enforced in December 2024, critics argue it lacks clarity on Bitcoin’s role in state treasuries.

Coinbase and Gemini Push Deeper into EU

Last week, it was reported that Coinbase and Gemini are expanding their European operations by securing regulatory licenses in Luxembourg and Malta, respectively.

Gemini, led by the Winklevoss twins, is close to finalizing its license in Malta after receiving a MiFID II license from the country’s Financial Services Authority last month.

Malta has already licensed exchanges like OKX and Crypto.com under the EU’s Markets in Crypto-Assets (MiCA) framework.

However, some EU regulators are concerned about the speed of approvals in smaller nations with limited staff.

Malta’s FSA defended its pace, citing years of experience and strong anti-money laundering standards.

Meanwhile, Coinbase is set to receive a license from Luxembourg, where crypto firms have been labeled “high-risk” for money laundering.

Coinbase has over 200 employees in Europe and plans to hire at least 20 more.

BitMEX co-founder Arthur Hayes believes the Federal Reserve is primed to inject massive liquidity into the US economy.

In an interview on the David Lin Report, Hayes says that between now and 2028, liquidity in the “realm of $9 trillion” will be injected into the US economy, initially flowing into the traditional economic sectors before trickling down to risk assets such as Bitcoin (BTC).

“…And I think the banks are going to free, because they now don’t have to hold all this equity capital against their treasury book, they can lend more into the real American economy. And so you’re going to see the amount of loans going to manufacturing firms increase, which is again… that’s an increase in credit. And that will make its way into crypto as well.”

The BitMEX co-founder says Bitcoin could skyrocket by around 139% from the current price by the end of the year. By 2028, Hayes Bitcoin could go up nearly tenfold.

“So I think that we get to $250,000 by the end of the year. It will be bumpy along the way, obviously. But that’s sort of my end-of-year price target. And then a $1 million Bitcoin.”

On why Bitcoin could outperform other risk assets amid the expected injection of liquidity, Hayes says,

“So Bitcoin has a fixed supply. It’s obviously a much smaller market in terms of market cap. And so you have a lot of things chasing a very small door, then the price goes up on the margin. And so that’s why Bitcoin has been the best performing financial asset in the last 15 years.”

Bitcoin is trading at $104,462 at time of writing.

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Historical Price Rollercoaster

Back in March 2017, XRP burst in price, rising from $0.0055 to a high of $3.80. After peaking at that all-time high in January 2018, it fell hard. XRP initially broke through $2 on December 30, 2017. By January 13, 2018—two weeks later—it dipped below again. That initial test revealed the $2 level was more resistance than support for new buyers.

Related Reading: Taiwan Official Proposes Bitcoin As Part Of National Reserve Strategy

Failed Breaks After Rally

XRP attempted to break past that level once more in April 2021. It peaked at $1.96 but could not make further progress. From January 2018 all the way up to December 2024, the $2 line acted as a ceiling. Traders watched it cap price action for almost seven years. Every time XRP hit against that wall, it fell back into the $1 zone.

$XRP

Thats about as clean as it gets.

This time it is different.

This time it’s XRP. pic.twitter.com/9mK8QVuQVX

— Guy on the Earth (@guyontheearth) May 9, 2025

Recent Break Above Two

Based on reports, XRP finally cleared the $2 trendline in December 2024, when broader markets jumped on a bullish wave. Since then, the coin has stayed above this line for almost five months. That’s a first in XRP’s history. While its bounce hasn’t been as fast as Bitcoin’s or Ethereum’s, holding this level longer than ever feels different.

Analyst Predictions And Warnings

As per “Guy on the Earth,” remaining above $2 would pave the way for greater prices. He previously predicted an increase to $3.30, which already occurred. His next goal rests at $5.30, where he advises traders to take profit. He said “this time is different” for the altcoin.

Wider Risks And Outlook

This trend in prices is just half the story. Ripple’s legal battle against the SEC and regulatory updates for crypto would do the trick. On-chain metrics such as active accounts or large transfers would put some perspective behind that $2 hold.

Traders should pay attention to sudden spikes in daily volume around this line. If XRP drops below $1.80 on a daily chart, some analysts will declare the setup invalid. For the moment, however, many view this extension above $2 as a signal that XRP’s next act could be better than its previous one.

Featured image from Unsplash, chart from TradingView

Institutional investment in Bitcoin (BTC) has strengthened, but its price has struggled to reflect the growing demand, according to BlackRock’s Global Head of Digital Assets, Robbie Mitchnick.

Despite continued adoption by large financial players, Bitcoin has experienced significant ETF outflows and cautious sentiment in early 2025, which have kept prices below previous highs.

Mitchnick noted that short-term market behavior and macroeconomic uncertainty have slowed momentum despite optimism surrounding regulatory shifts in Washington initially drove gains,

Recession could be catalyst

Speaking with Yahoo Finance on March 18, Mitchnick argued that Bitcoin’s fundamental characteristics — scarcity, decentralization, and independence from traditional monetary systems — position it as a strong hedge against economic downturns.

He further suggested that a US recession could serve as a major catalyst for Bitcoin’s next rally.

According to Mitchnick:

“A recession would be a big catalyst for Bitcoin. It’s long liquidity, meaning it benefits from increased fiscal spending, deficit accumulation, and lower interest rates — all typical features of a recessionary environment.”

Mitchnick highlighted that while gold has surged to record highs amid growing economic uncertainty, Bitcoin has not yet mirrored that trend. He attributed this divergence to Bitcoin’s short-term trading trends, where it is often treated as a risk-on asset rather than a store of value.

Additionally, he explained that recent Bitcoin ETF outflows have been primarily driven by hedge funds unwinding spot-futures arbitrage trades rather than long-term investors exiting the market.

He emphasizing that institutional confidence in Bitcoin remains strong despite short-term volatility, saying:

“The core long-term holders are still in.”

US Bitcoin reserve

Mitchnick also weighed in on President Donald Trump’s move to establish a US Strategic Bitcoin Reserve, calling it a strong signal of support for BTC’s unique status within the digital asset space.

However, he noted that the specifics of how the government plans to acquire and manage Bitcoin remain unclear, which does not help with the current uncertainty prevalent in the market.

Mitchnick also indicated that institutional capital is still flowing into the market. He noted that professional investors appear to be taking advantage of the current dip, with many treating Bitcoin’s price weakness as an accumulation opportunity.

He said:

“Some of the most sophisticated Bitcoin accumulators we speak with are treating this dip as an opportunity.”

Despite ongoing regulatory uncertainties and security concerns in the broader crypto industry, Mitchnick remained optimistic about Bitcoin’s long-term role.

He also argued that investors will increasingly view Bitcoin as a hedge against traditional financial instability, potentially driving renewed momentum in the months ahead amid the uncertain economic landscape.

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