Former Goldman Sachs exec predicts Bitcoin rally on global liquidity and weak dollar
- Weak dollar could boost Bitcoin’s rise
- Global liquidity has strong correlation with BTC
- Raoul Pal highlights risk vs. opportunity in cryptocurrencies
Former Goldman Sachs executive and current CEO of Real Vision, Raoul Pal, shared his view on a possible significant appreciation of Bitcoin in the next 12 months. According to him, the movement is directly linked to the weakness of the US dollar and the increasing global liquidity, factors that traditionally favor risk assets, such as cryptocurrencies.
In a recent analysis, Pal said that several monetary policymakers around the world should look to devaluing the dollar as a strategy to facilitate debt repayment. Such action, he said, would increase the global money supply, boosting assets such as Bitcoin. “Everyone needs and wants a weaker dollar to pay their dollar debts,” he said. “Nobody wants it to move too fast… but they need it to fall in the next 12 months.”
Pal cited an 87% correlation between global liquidity and the price of Bitcoin, reinforcing that this is one of the most relevant indicators for the performance of the main cryptocurrency on the market. He also recalled the year 2020, when the increase in liquidity, combined with a recession, was the trigger for one of the largest appreciations of BTC. “See 2020 for more details. Recession and increasing liquidity = stronger BTC,” he wrote.
A chart shared by the investor indicates that Bitcoin’s price tends to follow liquidity trends with a lag of about 12 weeks. To him, this relationship is more important than any other market narrative. “Maybe, just maybe, it’s been this easy all along,” he said. “IF this works, it will definitively prove that liquidity is still THE dominant factor in markets. Not tariffs. Not politics. Not rates. Not (insert your narrative).”
On the date of the statement, Bitcoin was trading at $93.800, one of its highest levels in recent memory, while the United States' public debt reached $36,2 trillion.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
The Bank of England keeps interest rates unchanged as expected and slows the pace of balance sheet reduction.
The Bank of England reiterated its cautious stance on future interest rate cuts, emphasizing that inflationary pressures remain significant. The government's autumn budget may become the decisive factor for the interest rate cut path for the remainder of the year.
Highlights of the Federal Reserve FOMC Statement and Powell's Press Conference
This FOMC decision and Powell’s speech sent a clear signal: the Federal Reserve is resuming rate cuts, but at a more cautious pace, with the core focus on balancing inflation stickiness and the risk of a slowdown in employment.
Initial Jobless Claims Data Stages a "Magic Show": From the Highest in Nearly Four Years to the Largest Drop in Nearly Four Years in an Instant!
Just a week ago, initial jobless claims had surged to their highest level in nearly four years, sparking market concerns over a spike in layoffs. However, the latest data released today presents a dramatic turnaround.
Tokenized Deposits Used to Optimize Cross-Border Settlements
Trending news
MoreCrypto prices
More
