Real Vision’s Raoul Pal is confident that we are still in the midst of the current bull cycle, and while it may take longer than expected, the market will eventually pick up. In an interview with The Paul Barron Network, he shared his thoughts on the current state of the market and what we can expect for the rest of the cycle, especially when it comes to Bitcoin and crypto.
Institutional Interest is Growing: Raoul said that institutional players are keenly waiting for regulatory clarity in the crypto space. As this clarity emerges, more big players will come into the market, potentially driving Bitcoin and other crypto assets higher. The key is that the market is still evolving and hasn’t reached its peak yet.
Cycles and Liquidity: According to Pal, we are still in the current cycle, which follows a global pattern. Previous cycles have been driven by the business and liquidity cycle, and this cycle won’t be shorter. While things may seem slow right now, there’s still time for the market to heat up, possibly pushing the cycle into 2026.
New Players, Less Downside: The presence of new players in the market, such as ETFs, might help reduce the downside risk in this cycle. Pal suggests that Bitcoin’s downside could be smaller compared to previous cycles, potentially limiting drops to 45% or 50%. However, altcoins could still experience significant losses, some even dropping by as much as 95%.
The Impact of Macro Economics on Crypto:
Pal also said that the market is heavily influenced by macroeconomic factors. He argues that the success or failure of the bull run depends on the larger economic conditions, such as inflation, liquidity, and the business cycle. As money flows through the economy, it will ultimately find its way into crypto. However, the market still needs to see institutional involvement fully ramp up.
