Former Goldman Sachs executive and Real Vision founder Raoul Pal has indicated that the depreciation of the US dollar may elevate Bitcoin 
$106,862 prices in the coming months. Through his posts on social media platform X, he emphasizes that the increase in global money supply can directly impact cryptocurrency markets.
Deliberate Weakening of the Dollar
According to Pal, policymakers aim to weaken the dollar in a controlled manner in response to rising debt burdens. The primary reason for this approach is to enable countries to manage their external debts more easily and reduce interest burdens. However, Pal stressed that this process is expected to unfold gradually rather than through a sudden drop.
“No one wants to collapse the dollar suddenly. Such a scenario could be destructive for risky assets,” Pal noted, stating that a weaker dollar is preferred over the next 12 months. This could create a favorable environment for alternative investment vehicles like Bitcoin.
Given the dollar’s dominant role in the global financial system, any depreciation will affect not just the US markets but the entire world. According to Pal, this could open doors of opportunity for cryptocurrencies that are hungry for liquidity.
The Link Between Global Liquidity and Bitcoin
Another point highlighted by Raoul Pal is the strong correlation between Bitcoin and global money supply. Data shows an 87% parallelism between Bitcoin price movements and global liquidity trends. This indicates that any increase in money supply resonates within the cryptocurrency market.
Pal illustrated this correlation by stating, “When money printing accelerated after the recession in 2020, Bitcoin hit record highs.” He believes that markets are currently heading toward a similar scenario. Particularly, the loose monetary policies of central banks could trigger a resurgence in Bitcoin’s price.
Furthermore, Pal argues that the effects of increased liquidity on Bitcoin typically manifest with a 12-week delay. Thus, actions taken today may show their impacts on cryptocurrency prices within three months.
Markets Focused on Economic Indicators
According to Pal’s analysis, Bitcoin is currently trading around $93,570. However, the crucial point is which direction this level will break in the future. In a time where the national debt of the US has surpassed $36.2 trillion, the direction of monetary policies is more critical than ever.
International trade relations, tariffs, and interest rate decisions are also significant factors shaping the value of the dollar. However, Pal states, “The primary determinant will be global liquidity,” relegating other factors to a secondary role.
All these developments have prompted Bitcoin investors to refocus on macroeconomic indicators. This is because both short-term opportunities and long-term trends are now intricately linked to global monetary policies.
