Raoul Pal on Crypto Crash: ‘Road to Valhalla Is Getting Very Close’

Real Vision CEO Raoul Pal shared his opinion on the recent crypto market crash. The CEO is optimistic that the crypto market will soon recover from its ongoing turbulence and liquidations.

Raoul Pal predicts recovery for crypto market

“The Road to Valhalla is getting very close,” says Pal. Simply put, Pal believes the crypto industry will soon begin an uptrend following a series of market crashes.

Pal went on to acknowledge the ongoing pain points in the market. He noted that the U.S. government shutdown has resulted in tight liquidity.  While taxes still flow, zero spending flows out.

Notably, the Treasury General Account (TGA) balance is approaching $1 trillion, a major reason for the liquidity squeeze and Bitcoin underperforming treasuries.

In response, the Federal Reserve (Fed) is being forced to restart temporary repurchase operations (Overnight Repo). The Fed is reportedly planning to inject nearly $30 billion of liquidity into the market.

With quantitative tightening still running, crypto has taken a major hit, while tech holds up on 401(k) autopilot flows.

However, the Real Vision CEO spotlighted the next phase that would see crypto come out victorious. He said the Treasury will begin spending $250 billion to $350 billion in the next few months, as soon as the government shutdown ends.

When this happens, quantitative tightening ends and the balance sheet technically expands. This would imply crypto rails getting free liquidity.

Besides, historical trends suggest that when the Treasury replenishes reserves and liquidity becomes extremely tight, it often foreshadows an impending reversal.

How regulations can help market

Raoul Pal added that the establishment of favorable crypto regulations could also support the bullish market outlook.

Specifically, he noted that the passing of the CLARITY Act would give the market the needed regulatory clarity. Once implemented, banks and wirehouses would receive the regulatory green light to custody and trade spot 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 passing of this bill by 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, would also boost the economy into the midterms. The legislation, which is all about budget restructuring, triggered a speculative reaction across risk assets after its approval in July.