Bitcoin’s Surge Tied to Global Cash Flow Dynamics, According to Raoul Pal
Raoul Pal, CEO of Real Vision, posits that Bitcoin’s surge aligns with the global liquidity cycle.
In a recent analysis, the former Goldman Sachs executive delves into how the crypto market intertwines with the established macroeconomic framework.
He compares the ISM, a key business cycle gauge, with Bitcoin’s current positioning in the cycle.
The striking correlation indicates Bitcoin’s alignment with these economic markers, with the cryptocurrency even taking a leading role, a development he anticipated.
The ISM manufacturing index serves as a crucial barometer for US economic health. Pal also scrutinizes global M2, a metric gauging money supply encompassing cash, checking accounts, and readily convertible deposits.
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According to Pal, Bitcoin’s lead over the ISM stems from the upturn in the liquidity cycle, which hit its low point last year and has since been on a steady rise in year-on-year terms.
This resurgence in liquidity underpins the significant rallies in both crypto and tech stocks this year, a consequence of the liquidity shift.
His analysis indicates that the liquidity cycle reached its low in October 2022 and his models foresee a continued upward trajectory well into 2024.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
