The cryptocurrency market continues to garner attention from investors and enthusiasts worldwide. Despite its revolutionary potential, the market hasn’t yet entered a full-fledged bull run. According to macroexpert Raoul Pal, key factors including a historic liquidation event and macroeconomic trends are influencing price movements. In this article, we’ll explore why crypto is lagging behind and what the future holds for this asset class.
The October 10th Crypto Liquidation: What Happened?
On October 10th, a significant liquidation event sent shockwaves through the cryptocurrency market. Pal referred to it as the “largest liquidation event in history,” beginning on Binance and Asian exchanges. This event caused automated liquidations to trigger without adequate buyers, leading to an extended sell-off. Exchanges reportedly absorbed billions in positions to prevent a collapse, but recovery has been slow, resulting in consistent downward pressure on prices.
The Broader Market Context
While crypto struggles to recover, other assets like gold, silver, copper, and the S&P 500 are hitting all-time highs. The U.S. dollar has weakened, losing around 13% over the past year. Historically, cryptocurrencies take approximately 180 days to catch up with significant macroeconomic shifts. For now, the recent liquidation still appears to be a lingering issue that’s keeping prices suppressed.
Looking Ahead: When Will Crypto Break Out?
Raoul Pal believes the next upward wave in crypto will coincide with broader economic events. With midterm elections approaching in November 2026, aggressive fiscal policies, tax breaks, and shifts in regulatory frameworks could create fertile conditions for growth. Pal cites upcoming legislation, such as the Stability Act and a crypto market structure bill, as factors that could pave the way for a market rebound.
While no one can predict the future with certainty, Pal’s estimate suggests significant price movement could begin by the end of February 2026. However, he also warns that unforeseen macroeconomic or political events could impact this timeline.
Expert Tip: Staying Informed and Prepared
For those looking to enter or expand their cryptocurrency investments, staying informed about market trends and regulatory updates is crucial. Additionally, consider leveraging tools and resources like the Ledger Nano X hardware wallet to securely store your assets. A reputable wallet can help you safeguard your crypto while you navigate these uncertain but exciting times.
Conclusion
The current slowdown in cryptocurrency prices is a temporary setback rather than an indication of weakness. As the market adapts to overcome past liquidation events and aligns with macroeconomic trends, the stage may be set for the next cycle of growth. As always, do thorough research and consider professional guidance before making investment decisions.
