Macro investor Raoul Pal sees the recent selloff in Bitcoin (CRYPTO: BTC) and crypto as a temporary U.S. liquidity squeeze, not a broken market cycle.

Why Bitcoin Is Not Broken

In his latest Global Macro Investor essay, Pal pushed back against claims that Bitcoin and crypto are structurally damaged, arguing the current weakness is driven by macro liquidity dynamics rather than a collapse in fundamentals.

He noted Bitcoin’s decline closely mirrors weakness in tech stocks, pointing to a shared macro driver.

Both asset classes are long-duration and highly sensitive to liquidity conditions, he said, making them vulnerable during periods of tightening.

According to Pal, U.S. liquidity has been…

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