Raoul Pal: Bitcoin, Ethereum & XRP May Have Found Their Final Lows
Macro investor Raoul Pal believes Bitcoin $BTC ,
and $XRP
have likely formed their “final low” after a sharp liquidity squeeze earlier this quarter. In October, liquidity was temporarily withdrawn from the financial system, triggering forced liquidations across crypto markets and exposing leverage-related weaknesses. Despite brief retests of lower levels, major assets held above or quickly recovered, suggesting the selling phase may be over.
Pal highlights that the recent market stress was driven by banking system liquidity shortages rather than crypto fundamentals. Central banks paused quantitative tightening, and further liquidity measures are expected. Meanwhile, U.S. Treasury and banking adjustments could expand credit creation, injecting trillions into the broader economy and providing support for risk assets.
Additionally, potential interest rate cuts, fiscal stimulus, and incoming deposits into the banking system could boost liquidity further. Pending crypto market structure legislation may also encourage wider adoption and institutional participation. While volatility may continue, Pal argues that BTC, ETH, and XRP are now positioned for potential upward momentum as downside risk has materially weakened.