Pal Sees Mid-Cycle Crypto Drawdown Before Economic Singularity

Global Macro Investor founder Raoul Pal believes that crypto's recent drawdown is not the end of a full cycle, but rather a 'mid-cycle fall'. In an interview on the Crypto Insider podcast, he explained that this setup resembles 2019 and 2020, when Bitcoin traded flat for months before the rally that took it to record highs in 2021.

Pal thinks that the current market is similar, with the buying since then coming from those who missed the initial rally. He also warned that a quick leverage flush still has to happen before the market can really get going.

The economic singularity arrives around 2030, according to Pal, when AI agents become a productive population and push the economy into an 'economic singularity'. This could lead to GDP growth reaching 20% to 30% in the early 2030s.