A new pricing model developed by PhD researchers Daniels and Hileman establishes a statistically significant link between Bitcoin's value and the USD money supply M2. The model, which demonstrates nearly a 90% fit based on a backtest of nearly ten years of data, suggests Bitcoin acts as a store of value that appreciates as the money supply increases. This economic foundation could provide the market with a consensus on fair value, potentially reducing volatility and expanding Bitcoin's use as a hedge against monetary dilution.

Salomon Brothers has incorporated a modified version of the Daniels & Hileman model into its economic research. The firm's adaptation uses a Monte Carlo simulation to predict prices one year out, factoring in assumptions about future monetary growth. Specifically, the model accounts for an increase in money supply to cover U.S. government spending on military and interest on U.S. debt in 2027, which is expected to drive continued and steady appreciation for Bitcoin.

The research identifies an inverse relationship between Bitcoin and USD monetary dilution. As the Federal Reserve prints money not absorbed by economic growth, the dollar's purchasing power decreases, while Bitcoin, with its fixed supply of 21 million coins, gains value. The model posits that Bitcoin is a better hedge against monetary dilution than Gold, particularly when adjusted for volatility, because Bitcoin's supply cap is enforced by code rather than geology.

Widespread adoption of this valuation model could lead to lower volatility and greater price consensus. Improved predictability may attract more buyers and lenders willing to accept Bitcoin as collateral. The model is currently undergoing private peer review by experts in economics, finance, and fintech, with a public release planned upon completion.

Veteran Wall Street investor Jordi Visser stated on Saturday that any emerging weakness in the job market will act as a positive catalyst for Bitcoin (CRYPTO: BTC). During an interview with entrepreneur and investor Anthony Pompliano, Visser articulated his view that labor market disruptions driven by artificial intelligence are creating structural economic tensions that central banks cannot address with conventional monetary tools.

Visser, who serves as the head of AI Macro Nexus Research at 22V Research, expressed a negative outlook regarding the near-term improvement of the job market. He emphasized that he is focused on the "wage side" of the economic narrative. "I think any weakness now that starts to show up from AI agents is going to be a positive for Bitcoin," said Visser.

The investor's thesis posits that individuals who feel displaced by AI-driven transformations will seek alternatives to hedge against potential institutional collapse. This shift is expected to bolster Bitcoin's status as a scarce asset that remains independent of human labor. Visser noted that this dynamic positions Bitcoin favorably despite the current dominance of AI stocks in capital flows.

Addressing recent market performance, Visser dismissed concerns that the cryptocurrency is in a "bubble." He reiterated the importance of maintaining a Bitcoin allocation within investment portfolios, noting that even a price drop well below $60,000 would not cause him concern. These comments follow his earlier observations that Bitcoin is unlikely to rally significantly while AI stocks continue to attract the majority of investment capital.

Visser's perspective connects macroeconomic labor trends with digital asset adoption, suggesting that specific failures in traditional employment sectors could directly benefit decentralized financial assets.