Bitcoin Breakout Imminent? Former Goldman Exec Says ‘Very Close’
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Written by
Yana Levkovich - Updated 2024-09-18 15:54:01
Macro expert and Real Vision CEO Raoul Pal suggests that Bitcoin (BTC) is on the brink of a significant breakout. He attributes this potential rally to one primary factor: the increase in global liquidity.
Pal recently informed his one million followers on X that Bitcoin's price seems to be rising in sync with global liquidity levels. To support his view, he shared a chart comparing global liquidity with Bitcoin's performance. According to this chart, the leading cryptocurrency could potentially hit $90,000 by November. “Close, very close. GMI (Global Macro Investor) Total Global Liquidity versus BTC,” Pal remarked, emphasizing the strong connection between the two.
Furthermore, Pal points out that the historical relationship between Bitcoin and the global money supply (M2) suggests that the top digital asset by market cap is gearing up for a major breakout. The global M2 metric measures the total money supply, including cash, checking deposits, and easily convertible near money. This relationship indicates that Bitcoin is closely tied to global monetary conditions. “Close, very close. Global M2 versus BTC,” Pal added, suggesting that Bitcoin's upward movement might be imminent.
Supporting this view, Real Vision macro expert Julien Bittel also believes that current macroeconomic conditions are beginning to inject more liquidity into the markets. Typically, this increase in liquidity creates a favorable environment for riskier assets like Bitcoin.
Hang in there, bulls. It’s felt like an eternity trapped in ‘The Boring Zone,’ but there’s finally some light at the end of the tunnel. Liquidity is on the rise again, and Bitcoin – being extremely sensitive to changes in liquidity conditions – has the potential to move explosively as fresh liquidity flows into the system. The macro environment is shifting. A major liquidity wave is now on the horizon, and when it hits, Bitcoin looks primed for a strong push higher in Q4. Patience is the name of the game now.
Both Pal and Bittel seem to agree that the changing macro environment and the influx of global liquidity could lead to a significant surge in Bitcoin's price in the near future. The increasing global liquidity and the historical trends suggest that Bitcoin is on the verge of a powerful rally.
