Advertise
- Rizwan AnsariRizwan Ansari
- Reviewed by:
Sohrab KhawasSohrab is a passionate cryptocurrency news writer with over five years of experience covering the industry. He keeps a keen interest in blockchain technology and its potential to revolutionize finance. Whether he's trading or writing, Sohrab always keeps his finger on the pulse of the crypto world, using his expertise to deliver informative and engaging articles that educate and inspire. When he's not analyzing the markets, Sohrab indulges in his hobbies of graphic design, minimal design or listening to his favorite hip-hop tunes.
- Nov 05, 2025 10:13 UTC
-
Bitcoin Drops Below $100K, Raoul Pal Says “Liquidity Flood” Will Spark Crypto Rally
Bitcoin slips below $100K as fear index hits extreme lows at 23.
Raoul Pal predicts a global “liquidity flood” could spark the next crypto rally.
GMI Liquidity Index signals massive uptrend, with $10 trillion global debt rollout ahead.
Bitcoin’s fall below the $100,000 mark has shaken market confidence, dragging the Fear & Greed Index down to 23, a sign of extreme fear. But while panic spreads, Global Macro Investor founder Raoul Pal sees it differently. He believes this dip could be the calm before a major surge in global liquidity that may reshape markets over the next year.
Global Liquidity Tightens Before the Flood
In a recent tweet post Pal explained that the recent government shutdown in the U.S. has triggered a sharp liquidity squeeze. With the Treasury General Account (TGA) building up cash and nowhere to spend it, liquidity has effectively been drained from the system.
The situation worsens because the Federal Reserve’s quantitative tightening (QT) is still in play, and the reverse repo facility, a key liquidity buffer, is already depleted. These combined forces have hurt markets, especially crypto, which relies heavily on liquidity.
Taditional finance managers have also suffered, underperforming their benchmarks, while tech stocks have held up slightly better thanks to steady 401(k) flows.
What Comes Next?
Once the shutdown ends, Pal expects a massive reversal,
- $250–350 billion in Treasury spending could flood the system.
- QT may end, expanding the Fed’s balance sheet again.
- The U.S. dollar could weaken as global money flows rise.
- Rate cuts may follow as economic data softens, while the CLARITY Act could finally bring regulatory confidence to crypto markets.
Pal also believes other global forces, like China expanding its balance sheet and Japan supporting the yen, will further boost liquidity.
Global Liquidity Surge Could Spark Crypto Rally
Further Pal’s data, the GMI Total Liquidity Index, a model tracking money flow across global markets, is approaching a critical uptrend that has historically fueled rallies in risk assets like stocks and crypto.
He calls liquidity “the only game in town,” explaining that the next 12 months will revolve around rolling out $10 trillion in global debt, which could inject fresh money into financial markets.
While most analysts focus on short-term price dips, Pal argues the real story lies in liquidity and its potential to drive the next bull market. As of now, Bitcoin is trading near $101,331, down 3% in the past 24 hours, bringing its market cap near to $2.02 trillion.
Never Miss a Beat in the Crypto World!
Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
FAQs
As per Coinpedia’s BTC price prediction, the Bitcoin price could peak at $168k this year if the bullish sentiment sustains.
With increased adoption, the price of Bitcoin could reach a height of $901,383.47 in 2030.
As per our latest BTC price analysis, Bitcoin could reach a maximum price of $13,532,059.98
By 2050, a single BTC price could go as high as $377,949,106.84
Trust with CoinPedia:
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
Investment Disclaimer:
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Yes 
No 
