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Raoul Pal Dismisses ’Broken Crypto’ Narrative, Blames U.S. Liquidity Crunch for Market Downturn

Raoul Pal Dismisses ’Broken Crypto’ Narrative, Blames U.S. Liquidity Crunch for Market Downturn

Author:

Global Cryptocurrency

Published:

2026-02-02 12:15:02

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BTCCSquare news:

Macro investor Raoul Pal challenges the prevailing narrative that cryptocurrency markets are fundamentally flawed amid recent price declines. The Global Macro Investor founder attributes the sell-off to structural liquidity drains in the U.S. financial system rather than crypto-specific weaknesses.

Two government shutdowns and the depletion of the Reverse Repo facility have created what Pal describes as an "air pocket" for risk assets. While the Senate has reached a funding deal, delayed House proceedings continue to constrain market liquidity. Pal maintains Optimism that resolution of these temporary pressures will restore favorable conditions for digital assets.

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