Raoul Pal stated yesterday on X that the recent crypto market sell-off is part of a broader liquidity cycle, arguing that the “road to Valhalla is getting very close.” The Real Vision CEO said current market stress stems from a U.S. government shutdown and tightening liquidity conditions.
Pal noted that the Treasury General Account (TGA) is nearing $1T, reducing liquidity and weighing on Bitcoin’s performance versus U.S. Treasuries. He added that the Federal Reserve has restarted overnight repo operations, injecting roughly $30B to ease short-term funding pressure. While crypto has been hit hardest, Pal suggested this phase typically precedes macro reversals.
According to Pal, a major shift could come once the shutdown ends, allowing the U.S. Treasury to release $250B–$350B back into markets. He also said regulatory clarity—particularly if the CLARITY Act passes the Senate in Q4 2025—could unlock institutional crypto flows.
Source: https://x.com/RaoulGMI/status/1985853176357036256
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