Macro economy expert Raoul Pal believes that Bitcoin (BTC) is on the verge of a major price explosion. Pal, a former Goldman Sachs executive, argues that Bitcoin tends to move in tandem with global liquidity cycles, and the coming months could bring significant gains for the cryptocurrency.
The Relationship Between Global Liquidity and Bitcoin
In a recent video on the Real Vision YouTube channel, Pal shared a chart that shows Bitcoin’s strong correlation with global liquidity cycles. According to Pal, every time global liquidity has increased, it has had a positive impact on BTC and other risk markets.
Pal commented on the chart:
“This is a beautiful chart. It includes GMI’s (Global Macro Investor) weekly global liquidity index, covering both private and public sector liquidity from major global economies. I think it’s perfect. Bitcoin leads by 10 weeks… so here we go. Bitcoin has seasonality – from this point forward, BTC is always strong.”
Bitcoin’s Rally in 2023
Pal also highlighted another chart, comparing Bitcoin’s price movement from January 2023 to March 2024. During that time, BTC surged by roughly 350%, rising from $16,500 to $74,000. According to Pal, the current conditions are set for another massive Bitcoin rally.
“Bitcoin is literally repeating what it did last year. We’ve got the macro setup, with the Fed gradually lowering rates, and other central banks joining in, like the European Central Bank (ECB) and Canada. Seasonality is in favor of the bulls, and the global liquidity cycle is in place. What more do we need?”
Massive Bitcoin Price Expectations
In the chart Pal shared, he marked a target of $200,000 for Bitcoin by early next year. At the time of writing, BTC is trading at $62,809. Pal’s analysis suggests that Bitcoin’s relationship with global liquidity, seasonality, and macroeconomic factors could result in substantial price movements in the near future. If Pal’s predictions come true, Bitcoin could see considerable gains in the coming months.
However, it’s important to remember that the crypto markets are highly volatile, and no one has a crystal ball to predict the future with certainty.
Bitcoin price, global liquidity, Raoul Pal, BTC rally, macroeconomic factors
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