The post Finance guru Raoul Pal shares investment strategy to tackle current crypto market dip appeared on BitcoinEthereumNews.com. As investors rattle with the ongoing cryptocurrency market downturn, finance expert Raoul Pal has weighed in and shared his preferred strategy for navigating the environment. According to Pal, his approach involves continuing to add to positions throughout the sell-off while accepting the likelihood of large swings in performance, as he explained in an X post on November 21. The finance veteran framed this as a long-term, multi-year strategy designed to capitalize on deep market dislocations, though he stressed that every investor’s circumstances and time horizons differ. “The current price action is showing no signs of letting up yet even though we are massively oversold, but having lived through huge rapid de-rsking events before in many markets, this too shall pass. My strategy is to add into these sell offs but Im ok with large swings in P&L in a long-term multi-year trend as I’ve explained many times, but everyone circumstances and time horizons are different,” Pal said.  Pal’s conviction in this method stems from what he sees as familiar patterns in the current decline. He described today’s market as unusually intense, driven by rapid unwinding of positions and thinning liquidity as concerns circulate about weakened market-maker balance sheets. The environment, he noted, closely resembles past shocks that initially appeared alarming but later reversed with equal force. Lessons from past crashes  To illustrate this, he pointed back to 2021, when a four-week correction drove (BTC) down by more than half its value and pushed Ethereum (ETH) and Solana (SOL) even lower before all three rebounded sharply to reach new highs. Earlier cycles show a similar dynamic, including a severe 72% plunge from 2019 into 2020 during the pandemic and a series of large Bitcoin drawdowns between 2016 and 2017 that repeatedly jolted the market before the uptrend resumed. Crypto market past… The post Finance guru Raoul Pal shares investment strategy to tackle current crypto market dip appeared on BitcoinEthereumNews.com. As investors rattle with the ongoing cryptocurrency market downturn, finance expert Raoul Pal has weighed in and shared his preferred strategy for navigating the environment. According to Pal, his approach involves continuing to add to positions throughout the sell-off while accepting the likelihood of large swings in performance, as he explained in an X post on November 21. The finance veteran framed this as a long-term, multi-year strategy designed to capitalize on deep market dislocations, though he stressed that every investor’s circumstances and time horizons differ. “The current price action is showing no signs of letting up yet even though we are massively oversold, but having lived through huge rapid de-rsking events before in many markets, this too shall pass. My strategy is to add into these sell offs but Im ok with large swings in P&L in a long-term multi-year trend as I’ve explained many times, but everyone circumstances and time horizons are different,” Pal said.  Pal’s conviction in this method stems from what he sees as familiar patterns in the current decline. He described today’s market as unusually intense, driven by rapid unwinding of positions and thinning liquidity as concerns circulate about weakened market-maker balance sheets. The environment, he noted, closely resembles past shocks that initially appeared alarming but later reversed with equal force. Lessons from past crashes  To illustrate this, he pointed back to 2021, when a four-week correction drove (BTC) down by more than half its value and pushed Ethereum (ETH) and Solana (SOL) even lower before all three rebounded sharply to reach new highs. Earlier cycles show a similar dynamic, including a severe 72% plunge from 2019 into 2020 during the pandemic and a series of large Bitcoin drawdowns between 2016 and 2017 that repeatedly jolted the market before the uptrend resumed. Crypto market past…

Finance guru Raoul Pal shares investment strategy to tackle current crypto market dip

2025/11/23 01:32

As investors rattle with the ongoing cryptocurrency market downturn, finance expert Raoul Pal has weighed in and shared his preferred strategy for navigating the environment.

According to Pal, his approach involves continuing to add to positions throughout the sell-off while accepting the likelihood of large swings in performance, as he explained in an X post on November 21.

The finance veteran framed this as a long-term, multi-year strategy designed to capitalize on deep market dislocations, though he stressed that every investor’s circumstances and time horizons differ.

Pal’s conviction in this method stems from what he sees as familiar patterns in the current decline. He described today’s market as unusually intense, driven by rapid unwinding of positions and thinning liquidity as concerns circulate about weakened market-maker balance sheets.

The environment, he noted, closely resembles past shocks that initially appeared alarming but later reversed with equal force.

Lessons from past crashes 

To illustrate this, he pointed back to 2021, when a four-week correction drove (BTC) down by more than half its value and pushed Ethereum (ETH) and Solana (SOL) even lower before all three rebounded sharply to reach new highs.

Earlier cycles show a similar dynamic, including a severe 72% plunge from 2019 into 2020 during the pandemic and a series of large Bitcoin drawdowns between 2016 and 2017 that repeatedly jolted the market before the uptrend resumed.

Crypto market past performance. Source: Raoul Pal

Additionally, alternative cryptocurrencies consistently experienced steeper losses during those phases, reflecting a pattern he believes is visible again today.

Although the current price action shows few signs of easing and the market appears heavily oversold, Pal argues that the broader macro backdrop remains supportive. To him, the present turbulence fits within the long history of rapid de-risking events that eventually give way to renewed strength.

With traders confronting sharp declines and uncertainty heightened by rumour rather than concrete negative developments, he suggested that stepping back from screens and temporarily disconnecting can help restore clarity.

Despite the discomfort, he maintained that such periods, while painful, are not outside the norm for crypto’s long-running cycles.

Featured image via Shutterstock

The post Finance guru Raoul Pal shares investment strategy to tackle current crypto market dip appeared first on Finbold.

Source: https://finbold.com/finance-guru-raoul-pal-shares-investment-strategy-to-tackle-current-crypto-market-dip/

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BitcoinEthereumNews2025/12/06 19:57