Bitcoin Sees Breakout as Raoul Pal Predicts Outperformance

Raoul Pal believes Bitcoin will outperform the Nasdaq 100 from here on out. He made this prediction after the Federal Reserve raised interest rates by 25 basis points to a range of 3.75% to 4.00%. This move was seen as bearish for crypto, but instead, Bitcoin's price surged past $81,000.

Pal argues that rising rates will force governments to print more liquidity, which is exactly what Bitcoin feeds on. He notes that Bitcoin has a high correlation with global liquidity and has historically performed well when liquidity turns up.

Pal pointed out three charts in support of his thesis. The first shows the ratio of Bitcoin to the Nasdaq 100 breaking out of its downtrend. The second chart zooms in on the weekly ratio, which has also broken through a falling channel. Pal's third chart shows the total crypto market value excluding the top 10 coins (OTHERS) hitting a new high.