During an interview with Scott Melker on “The Wolf Of All Streets,” Raoul Pal, CEO of Real Vision, shared insights that are likely to energize those invested in cryptocurrencies.
Pal highlighted that the market volatility and liquidity constraints expected in 2025 are actually setting the stage for a significant bull run anticipated in 2026.
He emphasized that around 90% of market dynamics are driven by liquidity rather than stories or technological progress. Pal estimated that between $7 trillion and $8 trillion in fresh liquidity will need to be injected over the next year to cover interest payments on global debt.
The former hedge fund manager suggested that the US government under the Trump administration would take aggressive measures to boost economic activity ahead of midterm elections, making fiscal stimulus unavoidable.
According to Pal, new regulatory adjustments—such as changes related to Supplementary Leverage Ratio (SLR)—will enable banks to purchase more Treasury securities. This mechanism could circumvent Federal Reserve interest rate policies and channel direct cash into financial markets.
He also pointed out that governments will persistently devalue their currencies as a strategy for managing debt rollovers, which serves as a powerful catalyst for scarce assets like Bitcoin.
Looking forward, Pal envisions not only Bitcoin but also smart contract platforms like Ethereum and Solana expanding their practical applications significantly. He described artificial intelligence (AI) and blockchain technology as becoming deeply intertwined; AI-driven agents may utilize cryptocurrencies and microtransactions among themselves, potentially pushing network valuations into the trillions of dollars range.
While acknowledging 2025 has been a challenging period marked by subdued crypto performance, Pal reminded investors that this cycle is far from complete. He does not foresee extreme crashes similar to past 80% declines in Bitcoin’s price but considers corrections around 50% as part of normal market behavior.
Please note: This content does not constitute investment advice.