Raoul Pal: Liquidity in 2025 lays the foundation for the 2026 crypto bull market

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Sharing with Scott Melker on “The Wolf Of All Streets” program, Real Vision CEO Raoul Pal believes that price volatility and liquidity shortages in 2025 are actually preparing for a strong crypto cycle in 2026.

According to Pal, about 90% of market volatility comes from liquidity factors, not technological breakthroughs or advancements. He estimates that the world needs to inject an additional $7–8 trillion in liquidity over the next 12 months to cover global debt interest payments.

Pal predicts that the Trump administration will be forced to aggressively stimulate the economy to gain an advantage in the midterm elections, making fiscal expansion unavoidable. Technical regulatory changes, such as SLR, could also allow banks to buy more Treasury bonds, thereby injecting money directly into the system and weakening the impact of Fed interest rate policies.

He believes governments will continue to devalue their currencies to roll over debt, a key factor driving assets with limited supply like Bitcoin. Not only Bitcoin, Pal also believes that smart contract platforms like Ethereum or Solana will expand strongly in the future.

According to Pal, AI and blockchain will become an “inseparable pair,” as AI agents use crypto and micro-payments to trade with each other, potentially pushing network value into the trillions of USD. While acknowledging that 2025 will be a “boring and difficult” period for crypto investors, Pal emphasizes that the cycle is not over, and 50% corrections should be considered normal, rather than the 80% crashes seen before.

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