Raoul Pal Says 'Young, Volatile' Bitcoin Is Tracking Global Liquidity: 'Nothing Is Broken'

Raoul Pal argued that Bitcoin’s recent weakness is not a sign of damage, but a normal “cold” phase in an asset that closely tracks global liquidity. He said Bitcoin and the Nasdaq Composite are driven mainly by money supply conditions rather than daily headlines, citing estimated correlations of 87% for Bitcoin and 97% for the Nasdaq to global liquidity. The article frames BTC’s 2.72% daily decline and price near $63,384 as part of this liquidity-driven cycle, not a structural breakdown. Pal reiterated his bullish long-term view, referencing the “Banana Zone” and cycle targets as high as $250,000-$450,000. Market impact: the commentary supports a bullish macro narrative for Bitcoin despite short-term price pressure, while reinforcing the view that broader liquidity conditions will likely determine the next major move.