- Pal & Coutts bullish crypto long term on liquidity, despite tariff volatility
- Pal sees easing liquidity as key driver; Coutts eyes stimulus response to tariffs
- View investing as probability game: endure short-term noise for long-term gain
Blockchain analysts Raoul Pal and Jamie Coutts remain bullish on Bitcoin and crypto prices long-term, citing prevailing liquidity conditions, even as geopolitical and socioeconomic decisions, like the recent Trump tariffs, trigger short-term volatility.
Pal Emphasizes Easing Liquidity, BTC Leadership
In a recent podcast, Pal highlighted liquidity’s influence, noting digital assets like Bitcoin aligned with changing liquidity trends over the past three months.
While acknowledging the impact of Trump’s tariff decisions on recent price action, Pal believes liquidity variations since late last year have played a more fundamental market role.
Pal noted financial conditions are easing quickly, a development he thinks favors bullish outcomes for crypto. Comparing Bitcoin’s performance to mainstream stocks, he cited the digital asset’s leadership role in the current market cycle.
Related: Trump Says ‘Boom’, Market Proves ‘Bust’: Tariffs Cause Massive Sell-Off
Coutts Sees Tariffs Forcing Stimulus, Boosting Risk Assets
Real Vision’s Chief Crypto Analyst, Jamie Coutts, agreed with Pal’s explanation regarding liquidity’s influence. However, Coutts stressed the unpredictability of how the Trump administration’s tariff policies could play out. He argued the tariff fallout pressures the Federal Reserve to act, potentially warranting a swift response from asset prices.
Coutts theorized the ripple effect from tariffs could trigger a growth shock requiring subsequent stimulus, cascading into a bullish phase for risk assets like Bitcoin and cryptocurrencies. He did, however, acknowledge potential for surprising short-term price action and uncertainty, as other macro policies could influence trends.
Navigating Short-Term Noise for Long-Term Gains
Coutts compared Bitcoin investment to “playing a probability game with the central banks.”
Related: Bitcoin’s Trump Tariff Test: Down to $82k, Can $78k Support Endure?
He suggested that while long-term expectations based on macro conditions are relatively clear, investors must endure potential short-term volatility driven by specific events to achieve long-term goals.
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