Raoul Pal attributes BTC drop to US liquidity shortage

Macro investor and Real Vision CEO Raoul Pal has argued that Bitcoin's recent price decline is due to a U.S. liquidity shortage, not any inherent flaws in the cryptocurrency itself, Cointelegraph reports. He explained that BTC has been moving in sync with software-as-a-service stocks, as both asset classes are valued on future cash flows and adoption potential. According to Pal, their recent downturn reflects a sensitivity to the macroeconomic liquidity environment and interest rate outlook. Pal noted that rising gold prices have absorbed liquidity, leaving fewer funds for BTC and software stocks. He added that the disappearance of the U.S. Treasury's reverse repo buffer has accelerated this liquidity outflow. Addressing concerns about potential hawkish policies from rumored Federal Reserve Chair nominee Kevin Warsh, Pal predicted that Warsh would instead cut interest rates and permit economic growth. He forecasts a bull market in the second half of the year, driven by a renewed supply of liquidity.