Macroeconomics expert Raoul Pal on Bitcoin $62,877He thinks that (BTC) is preparing for a big price explosion.
Global Liquidity and Bitcoin Relationship
Former Goldman Sachs executive Pal noted that Bitcoin tends to move in conjunction with global liquidity cycles. We have always seen in the past that an increase in global liquidity has positive consequences for BTC and risk markets in general.
In the video published on Real Vision’s YouTube channel, Pal shared a chart showing that global liquidity will increase in the next three months and BTC will follow this increase.
Pal commented on the chart:
“This is an absolutely beautiful chart. The GMI (Global Macro Investor) global weekly liquidity index, which includes both private and public sector liquidity from major global economies. I think it’s excellent. It’s 10 weeks ahead of Bitcoin…
So you have that. Bitcoin has seasonality – BTC is always strong from that point on.”
Bitcoin on Track for 2023 Rally
Pal shared another chart that closely reflects Bitcoin’s price action from January 2023 to March 2024. During this period, BTC rose from $16,500 to $74,000, a gain of around 350%. According to the macro expert, the current conditions are ripe for a major Bitcoin rally.
Pal expresses this situation as follows:
“Bitcoin is literally repeating what it did last year. We have macro overlap. The Fed will continue to cut rates over time, other central banks will join in. In fact, the ECB and Canada have already started. Seasonality is in favor of the bulls, the global liquidity cycle is in place. I don’t know what else is left.
Now that rise needs to begin.”
Expectations of a Big Rise in Bitcoin
Pal’s price target on the chart he shared is for Bitcoin to rise above $200,000 early next year. At the time of writing, BTC is trading at $62,809.
Bitcoin’s strong relationship with global liquidity, seasonality, and macroeconomic factors indicate that significant movements may occur in the cryptocurrency market in the coming period. Raoul Pal’s analysis suggests that a potential opportunity for investors is now approaching. If he is right, we could see BTC experience significant value gains in the coming months. However, given the volatile nature of cryptocurrency markets, investors should also remember that no one has a clear vision of the future.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
