Bitcoin (BTC) and the broader cryptocurrency market are poised for a significant upward trend due to increasing global liquidity, according to Raoul Pal, CEO of Real Vision and former Goldman Sachs executive.
Pal indicated to his 1.1 million followers on social media platform X that historical data, analyzing Bitcoin’s performance against the global money supply (M2), suggests Bitcoin is preparing for a substantial price increase.
“This period of tightening will end. Cryptocurrencies are currently impacted by reduced liquidity from a stronger US dollar and increased interest rates in late 2024,” Pal stated.
“This phase is nearly over as financial conditions are rapidly easing, and M2 is returning to peak levels. The current market action is simply a normal correction.”
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Pal draws a comparison between Bitcoin’s current trajectory and price behavior observed in 2017, correlating it to the M2 metric around President Donald Trump’s initial term.
He notes that Bitcoin underwent a sharp correction in 2017, which was then followed by a series of substantial rallies.
“We saw an identical correction in 2017,” Pal elaborated, “resulting from the same market response to Trump’s policies: a stronger dollar and higher interest rates, which subsequently reversed.”
Pal also projects Bitcoin’s future price action within a logarithmic regression channel.
This technical analysis method aims to establish approximate boundaries for the long-term high and low price points of an asset’s trend.
“Over time, we continue to advance within the logarithmic regression channel,” Pal observed.
“The question remains whether we will remain at the central (red) line or ascend beyond it by one or two standard deviations as this market cycle progresses.”
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