Real Vision CEO and former Goldman Sachs executive Raoul Pal believes increasing global liquidity will soon send Bitcoin (BTC) and other digital assets soaring on a new leg up.
Pal tells his 1.1 million followers on the social media platform X that a historical relationship between Bitcoin and the global money supply (M2) metric suggests that the top digital asset by market cap is gearing up for a massive breakout.
[adinserter block="1"]“This too shall pass. Crypto is still feeling the tightening in liquidity from the stronger dollar and higher rates in Q4 2024. That is almost done and financial conditions are easing fast and M2 is headed back to new highs. This is just a regular correction.”
Pal believes Bitcoin is repeating a similar 2017 price pattern correlated with the M2 metric, when President Donald Trump came into office for his first term. Bitcoin had a steep correction in 2017, but then took off on a series of rallies.
“We had the exact same correction in 2017 caused by the same reaction to Trump policies (higher dollar and higher rates which then reversed).”
Pal also believes Bitcoin will start trading higher within a logarithmic regression channel, a form of technical analysis that aims to show the approximate highs and lows of an asset’s long-term trend.
“Over time, we just keep climbing the log regression channel. Whether we stay at the main (red) or climb above it by another standard deviation or two remains to be seen as the cycle develops.”
Bitcoin is trading for $80,703 at time of writing, up 1.4% in the last 24 hours.
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