In a conversation with Scott Melker on “The Wolf Of All Streets,” Real Vision CEO Raul Pal said something that should excite crypto investors.
According to Pal, the price volatility and lack of liquidity in 2025 is actually laying the foundation for a big bull market in 2026.
Raul Pal argued that 90% of market movements are determined by “liquidity” rather than narratives or technological advances. Pal said around $7 trillion to $8 trillion of new liquidity would need to be created over the next 12 months to enable interest payments on global debt.
Pal said the US Trump administration will do everything possible to stimulate the economy to win the midterm elections, adding that fiscal expansion is inevitable.
He argued that new regulations (technical changes such as SLR) will allow banks to buy more government bonds, bypassing the Fed’s interest rate policy and providing a direct flow of cash into the Fed system.
He said governments will continue to devalue their currencies to defer debt, which is the biggest factor for assets with limited supply like Bitcoin.
Pal predicts that not only Bitcoin, but also smart contract platforms (Ethereum, Solana, etc.) will reach even bigger use cases in the future. Stating that artificial intelligence (AI) and blockchain technology will become an “inseparable pair,” the famous investor explained that the value of the network could reach trillions of dollars as AI agents pay each other using cryptocurrencies and micropayments.
Pal acknowledged that 2025 was a “boring and difficult” year for crypto investors, but reminded that the cycle is not over yet. He added that he does not expect Bitcoin prices to drop as much as 80% as in the past, but a 50% correction should be considered “normal.”
*This is not investment advice.