Bitcoin’s Descent: A Dance of Panic and Pal’s Prophecy 🐉💸

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Behold, the grand spectacle of Bitcoin’s descent beneath the $100,000 mark, a tempest that has dashed the hopes of many, sending the Fear & Greed Index into a tizzy at 23-a number that whispers of dread rather than delight. Yet amid this chaos, the venerable Raoul Pal, that sage of macroeconomics, chuckles like a mad prophet and declares: “Fear not, for the liquidity deluge is coming!”

The Thirst Before the Deluge

In a recent missive, Pal likened the U.S. government shutdown to a miser hoarding coins, draining liquidity from the system as the Treasury General Account swells like a greedy ogre. The Federal Reserve’s quantitative tightening, he opines, is but a child’s game compared to the coming storm, while the reverse repo facility lies barren, a desert in a world aching for rain.

Even the stalwarts of traditional finance tremble, underperforming their benchmarks like a jaded bard singing old tales. Only tech stocks dare to hold their ground, buoyed by the steady trickle of 401(k) funds-though one might argue even these are but drops in the ocean of despair.

What Lies Beyond the Horizon?

Pal envisions a future where the shutdown lifts, and lo! $250-350 billion in Treasury spending floods the system like a benevolent genie granting wishes:

  • The Fed’s balance sheet, long shriveled, may swell anew.
  • The U.S. dollar, once mighty, could wane as global liquidity swells.
  • Rate cuts may follow, like a serpent slithering after soft data, while the CLARITY Act offers crypto a sliver of hope.

And let us not forget the distant drums of China and Japan, their balance sheets expanding like the belly of a well-fed dragon, ready to unleash liquidity upon the world.

The Great Liquidity Tide and the Rise of Crypto

Pal’s GMI Total Liquidity Index, that modern-day oracle, hints at an impending uptrend, a harbinger of rallies in stocks and crypto alike. “Liquidity,” he proclaims, “is the only game in town,” and with $10 trillion in global debt looming, the markets may yet dance to a new tune.

While others fixate on the 3% drop in Bitcoin’s price, Pal sees a grander narrative-a liquidity ballet where the next bull market is but a footnote waiting to be written. And so, Bitcoin trades near $101,331, its market cap a mere $2.02 trillion, a number that feels both monumental and laughably small in the face of fate.

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2025-11-05 13:43