Raoul Pal Tells Why The Next 2 Weeks Are Extremely Crucial For The Crypto Market ⋆ ZyCrypto

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Macro investor Raoul Pal says the next two weeks could prove decisive for the cryptocurrency market, arguing that widespread pessimism among traders may be overlooking powerful macroeconomic forces building in the background.

In a recent market outlook, Pal said global liquidity remains the dominant macro driver of digital assets, citing 90% correlation with Bitcoin and 97% with the Nasdaq‑100 Index since 2012.

The investor noted that global liquidity continues expanding at roughly 10% annually and shows little sign of slowing. According to Pal, the Global Macro Investor financial conditions index leads liquidity by about six months and is still easing.

Raoul Pal added that a recent “air pocket” in U.S. total liquidity, created when government funding flows were temporarily curtailed, appears to have bottomed three months ago and is accelerating again. Since this measure tends to lead crypto markets by about three months, the rebound could soon filter into digital asset prices.

Pal also pointed to an accelerating business cycle, rising bank liquidity through the enhanced supplementary leverage ratio mechanism, incoming U.S. tax refunds that expand bank balance sheets, and China’s expanding balance sheet as additional sources of liquidity. Expected U.S. rate cuts may also increase disposable income and risk-taking.

Furthermore, Pal said the proposed CLARITY Act may unlock participation from banks and asset managers seeking regulatory certainty. Stablecoin issuance, which expanded roughly 50% last year, is growing rapidly, with transaction volumes already reaching trillions of dollars.

Pal believes these factors coincide with an oversold, fear-dominated crypto market and that bullish signals are forming on DeMark indicators on a daily and weekly basis. The analyst suggests a potential trend reversal within the next two weeks if conditions stabilize.

Meanwhile, CoinMarketCap data shows the total crypto market capitalization at about $2.44 trillion, up 1.37%. Bitcoin trades near $71,862, up 1.75% in the past day. In comparison, Ethereum has risen 2.19% to $2,120, following significant on-chain accumulation of roughly $2.43 billion, led by USD Coin inflows. Ethereum now faces resistance between $2,020 and $2,050, while support sits near $1,980.