Real Vision's Raoul Pal is confident that we are still in the current price increase phase, and although it may last longer than expected, the market will eventually improve. In an interview with The Paul Barron Network, he shared his thoughts on the current market situation and what we can expect for the rest of the cycle, especially regarding Bit and cryptoassets.
Institutional Interest is Rising
Raoul Pal said that institutional investors are clearly waiting for clear regulations in the cryptoasset field. When this clarity emerges, many major players will enter the market, which could push Bit and other cryptoassets higher. The key point is that the market is still developing and has not yet reached its peak.
Cycle and Liquidation
Pal believes that we are still in the current cycle, following a global model. Previous cycles have been driven by the business cycle and liquidation, and this cycle will not be shorter. Although things seem sluggish now, there is still time for the market to heat up, which could extend the cycle until 2026.
New Players, Risk Mitigation
The presence of new players in the market, such as ETFs, may help mitigate the risk of decline in this cycle. Pal believes that the potential for Bit to decline may be less than in previous cycles, possibly limiting the decline to 45% or 50%. However, altcoins may still suffer significant losses, with some potentially dropping by 95%.
The Impact of Macroeconomics on Cryptoassets
Pal also said that the market is heavily influenced by macroeconomic factors. He argues that the success or failure of the price increase depends on larger economic conditions, such as inflation, liquidation, and the business cycle. When the flow of money circulates in the economy, it will eventually find its way into cryptoassets. However, the market still needs to see full participation from institutional investors.
