Raoul Pal Says Global Liquidity Shows 90% Correlation with BTC, Sees Crypto in Oversold Zone

Raoul Pal said on X that global liquidity has been the dominant macro factor since 2012, showing a 90% correlation with BTC and a 97% correlation with NDX, with its roughly 10% annual growth showing no signs of slowing, Odaily Planet Daily reports. He noted GMI financial conditions, which lead global liquidity by about six months, remain accommodative, while a U.S. liquidity gauge that leads cryptocurrencies by roughly three months turned higher three months ago. Pal added that eSLR-linked credit expansion, tax refunds, expected U.S. rate cuts, potential passage of the CLARITY Act, rising stablecoin issuance and trading volumes, and record government support are increasing liquidity and could accelerate crypto market development. He argued cryptocurrencies are in a state of panic and historically oversold by most indicators, citing weekly and daily DeMark signals on TradingView that could soon complete and potentially mark a full trend reversal, while flagging elevated oil prices over the next two weeks as the main risk factor.