Raoul Pal framed the market’s behavior through a broader lens of liquidity. He referenced Global Macro Investor’s total global liquidity index, saying that “the Nasdaq, since 2012, has a 97.5% correlation, and Bitcoin is about 90%.” In his words, “None of it matters. It’s all one trade.”
According to Pal, the market no longer operates through individual asset narratives but through a unified liquidity cycle. Morehead agreed, calling it the “greatest macro trade of all time.” Both noted that as liquidity expands, assets with higher beta, like crypto, react most aggressively.
The two also discussed how major financial institutions have begun to embrace the “debasement trade.” Morehead said, “ talking about it. And I got an email from Goldman today, the debasement trade. I’ve been talking about it for 12 years.” Pal added that large banks are now openly addressing currency debasement and offering broader access to digital assets for clients.
This trend, they explained, marks a significant shift from crypto-native circles toward mainstream financial adoption. What began as an alternative hedge is now being incorporated into institutional strategy playbooks.
