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

Macro investor Raoul Pal said on Monday that Bitcoin (CRYPTO: BTC) and the Nasdaq Composite are primarily driven by “global liquidity” rather than the usual day-to-day narratives of earnings, news, or sentiment.

‘Bitcoin is Not Broken’

In an X post, Pal cited Bitcoin at 87% correlation to global liquidity and the Nasdaq Composite index at 97%.

“These assets are not really trading on earnings, or news, or whatever the story of the week is. They’re tracking the amount of money in the system,” the Real Vision CEO said.

Pal then turned his attention to Bitcoin, calling it a "young, volatile, emotional" asset that amplifies liquidity moves.

“Sometimes it runs hot. Sometimes it runs cold. Right now it is running cold, so people think something is broken,” Pal said. “Nothing is broken. It’s doing exactly what it always does.”

Pal argued that global liquidity is driven in large part by currency debasement and expanding government debt. This, he added, can be projected years ahead because interest payments on existing government debt are already known and tend to lead liquidity by roughly three years.

Bitcoin is 87% correlated to global liquidity. The NASDAQ is 97% correlated.

Which tells you something most people never realise. These assets are not really trading on earnings, or news, or whatever the story of the week is. They’re tracking the amount of money in the system.… pic.twitter.com/lWFjzm7dcg
— Raoul Pal (@RaoulGMI) July 27, 2026

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Will Bitcoin Go ‘Bananas’?

This is not the first time Pal has tied Bitcoin’s prospects to global liquidity. In fact, he coined the "Banana Zone,” a steep, liquidity-driven bull phase that can cause BTC to go “up only” on a vertical chart resembling a banana shape. Projected cycle targets range from $250,000 up to $450,000 for Bitcoin.

Arthur Hayes, Chief Investment Officer of Maelstrom, has made similar arguments, urging traders to factor in fiat liquidity growth before setting Bitcoin price targets.

Anthony Pompliano, CEO of Professional Capital Management, has also repeatedly deemed Bitcoin as a “hedge” against dollar debasement,

Price Action: At the time of writing, BTC was exchanging hands at $63,384.07, down 2.72% in the last 24 hours, according to data from Benzinga Pro.

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