Stock Market
By Steven Anderson
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Liquidity Cycles, Not Narratives. Pal's core argument is that liquidity cycles drive prices. Not headlines. Not the AI hype cycle.
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What's Weighing on Markets Right Now. The backdrop isn't exactly calm. US equities took a hit around the same time, with over $500…
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The Pushback on Pal's View. Not everyone's convinced. Skeptics have two main complaints.
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Raoul Pal isn't buying the "crypto is dead" argument. Not even a little.
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The Real Vision founder and former Goldman Sachs executive pushed back hard on the idea that money is rotating out of digital assets and into AI-driven tech stocks.
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Bitcoin was trading near $65,800 at the time of his comments, down roughly 2.7% over the prior 24 hours. Still well off its all-time high of $126,080.
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Pal's core argument is that liquidity cycles drive prices. Not headlines. Not the AI hype cycle. Not whatever narrative is dominating financial Twitter on a given Wednesday.
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The recent dip, in his view, is a mid-cycle correction. That's it. Not a structural break, not a sign that Bitcoin is losing relevance.
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He also thinks Bitcoin is currently trading at a discount relative to where liquidity conditions would normally put it.
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The backdrop isn't exactly calm. US equities took a hit around the same time, with over $500 billion in market value wiped out shortly after the open on one particularly rough…
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See also: Bitcoin Drops Below $70K, Wiping $176 Billion From Crypto Markets as AI Stocks Pull Capital Away
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Two things seem to be driving the jitters. First, a hawkish Federal Reserve. The ADP's May private-sector jobs report came in at 122,000 net additions — above expectations —…
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Second, stalled US-Iran negotiations added geopolitical noise to an already twitchy market. That kind of uncertainty doesn't help sentiment, especially when investors are already…
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And here's the thing Pal has been flagging for a while now: Bitcoin's correlation with the Nasdaq has gotten tighter over the past year.
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First, they say his starting point — the FTX-crash low near $15,700 — is cherry-picked. Start the clock somewhere else, and the comparison looks different.
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