Raoul Pal Calls Bitcoin’s Recent Drop a Mid-Cycle Pause, Not the End of the Rally

Macro investor Raoul Pal argues that Bitcoin’s latest price drop is simply a pause inside an ongoing cycle rather than the start of a bear market. He draws a parallel to the 2020 correction that was followed by a sharp rebound.

According to Pal, Bitcoin has become notably oversold against the Nasdaq, sitting two standard deviations below its usual relationship and 1.5 standard deviations under its long-term logarithmic trend.

He points to capital rushing into AI-related stocks as the main reason for the divergence. While overall liquidity remains elevated, there isn’t enough of it to fuel both sectors at once.

Pal cautions that traders betting on the classic four-year cycle and selling early could miss a large chunk of the next leg higher.

Based on information from cryptonews.net