Speaking to Scott Melker on “The Wolf Of All Streets,” Real Vision CEO Raoul Pal made statements that will excite cryptocurrency investors.
According to Pal, the price fluctuations and liquidity shortages in 2025 are actually laying the groundwork for a major bull market in 2026.
Raoul Pal argued that 90% of market movements are determined by “liquidity” rather than narratives or technological advancements. Pal stated that approximately $7 to $8 trillion in new liquidity needs to be created in the next 12 months to be able to pay interest on global debt.
Pal stated that the Trump administration in the US would take every step to stimulate the economy to win the midterm elections, adding that fiscal expansion was inevitable.
He argued that the new regulations (technical changes like SLR) would allow banks to buy more Treasury bonds, bypassing the Fed’s interest rate policies and providing a direct cash inflow into the system.
He said that governments will continue to devalue their currencies to roll over their debts, which is the biggest driver for assets with limited supply like Bitcoin.
Pal predicts that not only Bitcoin, but also smart contract platforms (Ethereum, Solana, etc.) will reach a much larger use case in the future. Stating that artificial intelligence (AI) and blockchain technologies will become an “inseparable pair,” the renowned investor explained that AI agents will use cryptocurrencies and micro-payments to pay each other, which could drive network values to trillions of dollars.
Pal acknowledged that 2025 was a “boring and difficult” year for crypto investors, but reminded them that the cycle is not yet over. He added that he doesn’t expect massive 80% drops in Bitcoin price like in the past, but that 50% corrections should be considered “normal”.
*This is not investment advice.
