Crypto Market Shifts into Mid-Cycle Phase with Positive Liquidity Conditions

Raoul Pal, former Goldman Sachs executive and CEO of Real Vision, says the crypto market is in a mid-cycle phase rather than a late-cycle top. This view is driven by shifts in global liquidity conditions, which he believes are changing from negative to positive.

Pal argues that during a previous period of negative excess liquidity, capital redirected toward artificial intelligence, temporarily weakening crypto performance. However, with excess liquidity turning positive again, he sees this as a supportive backdrop for digital assets, particularly layer one networks such as Ethereum (ETH), Solana (SOL), and Sui.

Pal believes these networks are oversold and positioned for asymmetric upside, citing long-term valuation models that place them in deeply oversold territory. He also notes that global M2 trends have turned more supportive, creating space for risk assets like Bitcoin (BTC) to grow.