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Raoul Pal, CEO of Real Vision shared his opinion on the recent crypto market crash. The CEO is optimistic that the crypto market will soon recover from its ongoing turmoil and liquidations.
Raoul Pal predicts recovery for the crypto market
“The Road to Valhalla is getting very close,” says Pal. Simply put, Pal believes that the crypto industry will soon begin an uptrend after a series of market crashes.
Pal went on to recognize ongoing pain points in the market. He noted that the US government shutdown has resulted in tight liquidity. While taxes still flow, zero spending flows.
In particular, the balance of the Treasury General Account (TGA) is approaching $1 trillion, a major reason for the tight liquidity and Bitcoin treasuries underperforming.
In response, the Federal Reserve (Fed) was forced to resume the operation of temporary recovery (Overnight Repo). The Fed is expected to inject nearly $30 billion of liquidity into the market.
With quantitative easing still underway, crypto has taken a big hit, while technology keeps 401(k) autopilot flows.
However, the CEO of Real Vision pointed out the next phase that will see the crypto emerge victorious. He said the Treasury will start spending $250 billion to $350 billion in the next few months, as soon as the government shutdown ends.
When this happens, quantitative easing ends and the balance sheet expands technically. This would imply that crypto rails receive free liquidity.
Also, historical trends suggest that when the Treasury draws down reserves and liquidity becomes extremely tight, it often foreshadows an impending reversal.
How regulation can help the market
Raoul Pal added that the establishment of favorable crypto regulations could also support the bullish market outlook.
In particular, he noted that the passage of the CLARITY Act it will give the market the regulatory clarity it needs. Once implemented, banks and wirehouses will receive the regulatory green light for custody and spot trading of crypto ETFs at scale.
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The CLARITY Act passed the House of Representatives on July 17, 2025, and is now in the Senate for consideration. Market observers expect the passage of this bill at the end of Q4, 2025. The bill seeks to establish a clear regulatory framework for crypto markets.
Pal added that the “Big Beautiful Bill,” passed in July, also boosted the economy in the midterms. The legislation, which is all about restructuring the budget, has activated a speculative reaction across the risk axis after its approval in July.
