Bitcoin Price Linked to Global Liquidity, Says Raoul Pal
Raoul Pal, founder of Real Vision, claims that Bitcoin's price movements are closely tied to global liquidity. He states that there is an 87% correlation between the two, meaning that changes in the total money supply in the financial system significantly impact Bitcoin prices.
Pal notes that this relationship also applies to the Nasdaq, which shows a 97% correlation with liquidity. This suggests that both markets respond primarily to monetary flows rather than news or fundamentals.
Keyrock's analysis supports Pal's view by showing an eight-month lag between US debt issuance and Bitcoin returns. According to Pal, his bullish target of $450,000 for Bitcoin depends on continued liquidity expansion by central banks.