Raoul Pal Says Bitcoin Isn’t Broken as US Liquidity Shock Drives BTC and SaaS Selloff
Key Takeaways:Bitcoin and SaaS Are Telling the Same StoryU.S. Liquidity Drain Hits Risk AssetsFed Narratives and Rate Cut Expectations
Pal also opposed fears of postponed rate cuts by the new leadership of the Fed. He dismissed claims that Kevin Warsh would act as a hawk, arguing that Warsh is aligned with a playbook focused on easing policy while allowing the economy to run hot.
In Pal’s view, rate cuts, fiscal stimulus, and regulatory changes tied to bank liquidity are still on the table. He expects these measures to restore liquidity through the banking system rather than through aggressive balance sheet expansion.
Crucially, Pal believes the current U.S. government shutdown represents the final major liquidity hurdle. Once resolved, the conditions that suppressed risk assets should ease.
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