Former Goldman Sachs Executive Predicts Bitcoin Rally Amid Weakening US Dollar
Renowned former Goldman Sachs executive, Raoul Pal, is optimistic about the future of Bitcoin (BTC) as he anticipates a rally in the coming months driven by a weakening US dollar.
Raoul Pal’s Insights
Pal, who has a substantial following of 1.1 million on the social media platform X, shared his views on the potential Bitcoin surge. He believes that policymakers will strategically debase the US dollar to manage debt payments, leading to a ripple effect that will benefit risk assets like Bitcoin and other cryptocurrencies.
He stated, “Everyone needs and wants a weaker dollar to service their dollar debts. No one wants it to move too fast (it blows up value at risk), but they need it lower over the next 12 months.” Pal emphasized that this global liquidity shift is crucial for various economies and is a key factor in trade negotiations, particularly with China.
Bitcoin and Global Liquidity
To support his bullish stance on Bitcoin, Pal highlighted the strong correlation between total global liquidity and BTC, noting an 87% correlation. He also pointed out that Bitcoin witnessed a significant rally five years ago due to currency debasement, emphasizing that the same trend could repeat itself in the current economic climate.
Pal shared a chart showcasing how Bitcoin’s price movement aligns with the rise and fall of global liquidity, with the latter typically leading by 12 weeks. He expressed his belief that liquidity remains a dominant force in the market, overshadowing other factors such as tariffs, politics, and interest rates.
Current Status and Future Outlook
As of now, Bitcoin is trading at $93,570, while the US national debt stands at a staggering $36.214 trillion. With these economic indicators in mind, Pal’s predictions for a Bitcoin rally gain more credibility.
Pal’s insights and analysis provide valuable insights into the potential growth of Bitcoin in the near future, especially in the context of a weakening US dollar and increasing global liquidity.
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