Bitcoin price prediction by Raoul Pal: Global liquidity growth could push BTC higher

Bitcoin price prediction by Raoul Pal: Global liquidity growth could push BTC higher
Raoul Pal is optimistic about Bitcoin’s outlook.

​Investor and Real Vision founder Raoul Pal believes the pessimism surrounding the crypto market may be temporary. According to him, the key factor influencing Bitcoin’s performance remains the expansion of global liquidity, which historically shows a strong correlation with BTC.

In a post on X, Raoul Pal noted that global liquidity remains one of the most important macroeconomic factors for financial markets. According to him, since 2012 its dynamics have shown about a 90% correlation with Bitcoin and roughly 97% with the Nasdaq index.

The investor emphasized that this indicator continues to grow at around 10% per year and currently shows no signs of slowing down. In addition, financial conditions, according to GMI indicators, remain loose and traditionally lead changes in global liquidity by about six months.

Pal also pointed to the recovery of liquidity in the United States. According to him, the recent decline was caused by a temporary reduction in total liquidity, but the indicator has now started to rise again, which historically could support the crypto market.

Macroeconomic drivers of the crypto market

In addition to global liquidity, Raoul Pal highlighted several other factors that could support the crypto market. These include potential interest rate cuts in the United States, the expansion of China’s balance sheet, and the growth of stablecoin issuance, which he said increased by about 50% over the past year.

The investor also noted that regulatory developments in the United States could become an additional driver. In particular, the adoption of the CLARITY Act could accelerate capital inflows, as many banks and asset managers are already showing interest in using crypto technologies.

Market fear and a potential reversal

According to Pal, despite strong macroeconomic factors, sentiment in the crypto market remains extremely negative. He noted that by most measures the market is currently in a state of fear and appears to be one of the most oversold in history.

The investor also pointed to DeMark technical indicators, which may signal the formation of a base for a trend reversal. According to Pal, the combination of rising global liquidity, easing financial conditions, and an oversold market creates conditions for Bitcoin to recover in the coming weeks.

For reference, Raoul Pal is included in the ranking of Canada’s richest traders.

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