No Bubble, No Drama: Crypto Market Hysteria Need Not End In Tears
Global macro investor Raoul Pal dismisses fears of a tech bubble, drawing a sharp contrast between current market conditions and the dotcom mania of the late 1990s. "We are less than 1 standard deviation from the trend," he notes, emphasizing that valuations remain grounded compared to historical extremes.
The rally in tech and crypto assets is fueled by global liquidity, driven by unprecedented debt levels. "Debt drives liquidity via debasement," Pal observes, framing this not as a doomsday scenario but as a structural reality. The market's resilience reflects this liquidity surge rather than irrational exuberance.
Crypto markets continue to defy crash predictions, with institutional adoption and macroeconomic forces overshadowing short-term volatility. The absence of parabolic speculation—a hallmark of past bubbles—suggests a more sustainable growth phase for digital assets.
