Raoul Pal Says Crypto Market Nowhere Near COVID-19 'Peak Fear'

Macro investment strategist Raoul Pal believes the recent crypto market pullback is far from a cause for panic and could, in fact, be a rare entry point for Bitcoin BTC/USD investors.

What Happened: Speaking in a podcast on April 7, Pal said investor sentiment hasn’t yet reached the “peak fear” levels last seen during the COVID-19 crash, but it's getting close—and that’s exactly when big opportunities arise.

He pointed out that Bitcoin has endured seven pullbacks of 20%–30% over the past two and a half years, including two 30% drops, one 35%, and two 40% corrections in 2017 alone, yet still posted extraordinary returns that year.

"You probably don't remember any of the other ones," Pal said, "because once the market recovers, they vanish from memory."

The Macro View

Pal's investment thesis, known as “The Everything Code,” revolves around global liquidity as the primary market driver, not the Fed. He explained that the need to service aging government debt structures fuels liquidity injections, which ultimately pushes asset prices higher.

"The Fed cut is a red herring," Pal said. "It's delayed versus actual liquidity. What really matters is financial conditions and they've been easing fast."

He expects this trend to continue as political uncertainties, such as Trump's sweeping tariff threats, begins to stabilize through negotiations and rollbacks, removing friction from the markets.

Also Read: Bitcoin Is A ‘More Liquid And Higher Volatility Version Of Gold’: Bernstein

Why It Matters: For crypto investors, Pal’s message is loud and clear: this isn’t the start of a prolonged bear market, it's a setup.

"We're in a time that is almost as ‘peak fear' as COVID was… these things don't come often, but when they come, they're a goddamn gift."

He views current conditions, both sentiment-driven and macroeconomics, aligning for a potential strong rebound in the months ahead.

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