Raoul Pal, CEO of Real Vision, declares that the crypto market remains in a mid‑cycle phase rather than nearing a late‑cycle top, citing recent shifts in global liquidity as the primary catalyst.
Pal’s Assessment of the Current Cycle
Pal, a former Goldman Sachs executive turned macro investor, argues that the recent dip in crypto performance stems from a temporary reallocation of capital toward artificial intelligence, not from a deterioration in blockchain fundamentals. He emphasizes that investors responded to a period of negative excess liquidity, which reduced the flow of funds into digital assets.
Liquidity Rotation and Its Effects
According to Pal, the latest data show excess liquidity turning positive again, creating a more favorable backdrop for crypto investors. This shift in monetary conditions, he notes, should restore confidence in the market and support price stability for major coins.
Outlook for Layer‑One Networks
Pal highlights Ethereum, Solana, and Sui as layer‑one protocols that appear oversold and poised for asymmetric upside. He expects that renewed liquidity will attract investors back to these blockchain projects, potentially lifting their prices as demand rebounds.