Real Vision CEO Raoul Pal thinks Bitcoin’s (BTC) rally is all about the global liquidity cycle.
In a new analysis, the former Goldman Sachs executive lays out how he believes crypto is tied into the traditional macroeconomic framework.
“Below you will find a chart of ISM (our preferred barometer for the business cycle) versus what Bitcoin is currently discounting in terms of where we are in the cycle. As you can tell, the two are very closely correlated and Bitcoin is even leading as you would expect…”
Source: Raoul Pal/Substack
The ISM manufacturing index is an indicator of US economic activity.
Pal also looks at global M2, a money supply metric that measures peoples’ cash, checking accounts, and other types of deposits that are easily