Raoul Pal Predicts Liquidity Surge Post-Government Shutdown
- Raoul Pal forecasts liquidity surge post-U.S. government shutdown.
- Predicted market impact of the Treasury’s increased spending.
- Expected shifts in crypto regulation with new legislation.
Raoul Pal, Real Vision CEO, outlines expected crypto market shifts after U.S. government shutdown ends, stressing liquidity surges and regulatory impacts.
These developments signal potential major capital influx into crypto markets, affecting Bitcoin, Ethereum, and related assets as the Clarity Crypto Act progresses, impacting industry frameworks.
Raoul Pal, CEO of Real Vision, has analyzed the impact of the U.S. government shutdown ending. He forecasts a significant liquidity surge as the Treasury General Account resumes spending, affecting markets for months.
Pal, known for his macroeconomic analysis, stated that the dollar might weaken with increased liquidity. He emphasized the relevance of the Clarity Crypto Act Bill, which aims to provide a clear regulatory framework for digital assets.
The market is expected to experience a liquidity flood, with implications on digital assets like Bitcoin and Ethereum. Recent data indicates institutional investors are accumulating during the volatility, suggesting confidence in a market recovery.
The Treasury’s spending is anticipated to cause short-term volatility. Meanwhile, the Federal Reserve’s policy decisions, discussed in December’s meeting, may impact liquidity. Experts anticipate the Clarity Crypto Act to drive regulatory clarity for US crypto markets.
Raoul Pal, CEO & Co-founder, Real Vision, stated, “In the next few days, there will be an increased liquidity flow due to massive spending from the Treasury General Account, and this will continue for several months. The dollar will begin to lose strength, and the balance sheet will continue to rise. The year-end funding squeeze is the next major phenomenon to watch.” source
Whale and institutional activities indicate an optimistic market view, with significant capital expected. Upcoming liquidity cycles might mirror previous events when cryptocurrencies like Bitcoin and Ethereum observed notable gains.
Historical trends show that liquidity cycles impact crypto prices significantly. According to Pal, these cycles have led to swift market recoveries in the past, with assets like BTC and ETH rallying following liquidity influxes.
