Global Liquidity Surge to Extend Crypto Bull Run into 2026
- Raoul Pal predicts the crypto cycle will expand until at least 2026, driven by an uptrend in global liquidity linked to government debt.
- Central banks are increasing liquidity by approximately 8% annually to manage debt, creating a hurdle rate of around 11% for investments.
- Pal suggests that Bitcoin and Ethereum are high-beta macro assets aligned with ISM manufacturing index trends.
- A significant liquidity drain from the Treasury General Account has impacted crypto prices but is expected to reverse towards year-end.
- The total crypto market cap is currently $3.67 trillion, as per recent data.
Raoul Pal and Julien Bittel highlight the importance of global liquidity and government debt dynamics in shaping the future of cryptocurrency markets, predicting a prolonged expansion phase lasting into at least the next three years.
With central banks focusing on liquidity management, Pal argues that concentrated investments in crypto assets like Bitcoin offer superior returns against fiat debasement and inflation hurdles.Source
