- Cryptocurrency market has likely reached its final low and advises investors to hold, says Raoul Pal.
- He predicts a surge of liquidity in 2026, favoring major Layer-1s, Sui, and select privacy coins.
The cryptocurrency market may have just reached its “final low,” according to Real Vision CEO Raoul Pal, signaling a crucial moment for investors. In a recent When Shift Happens podcast interview, Pal shared his insights on the current market cycle and outlined why doing nothing could be the smartest move heading into 2026.
The Case for “Doing Nothing”
Pal warns that retail investors often lose money by overtrading or using leverage during volatile periods. Instead, he recommends a disciplined, two-pronged approach:
- The Minimum Regret Portfolio: Focus on major Layer-1 blockchains such as Bitcoin (BTC), Ethereum (ETH), and XRP, rather than chasing speculative memecoins. Pal emphasizes that Layer-1s are unlikely to go to zero in a single market cycle, making them safer long-term bets.
- The Extended Cycle: Contrary to the popular 4-year halving theory, Pal sees this cycle extending into 2026. With massive debt rollovers—estimated at $10 trillion—he predicts a surge in global liquidity that could fuel the next bullish wave.
Hidden Opportunities in Undervalued Projects
While he remains confident in major cryptos, Pal is “massively overweight” on Sui (SUI). Using Metcalfe’s Law models based on active users and stablecoin flows, he believes Sui is roughly 80% undervalued compared to Solana (SOL). Although adoption relies heavily on Mysten Labs, Pal views the risk-reward profile as highly favorable.
He also highlights privacy-focused coins like Zcash (ZEC) as potential beneficiaries of returning liquidity. Pal cautions, however, that investors should wait for these assets to demonstrate a clear trend before committing capital.
The Perfect Storm for 2026
Pal sees multiple factors converging for a potential crypto boom. Changes in banking regulations may allow banks to hold Treasuries with lower risk weighting, unleashing unprecedented purchasing power. Additionally, fiscal and monetary policies in the U.S. and China could create a “perfect storm” for risk assets.
According to Pal, the total cryptocurrency market could reach $100 trillion over the next decade. For 2026, his advice is simple: hold steady and resist the urge to trade during temporary dips.
“We’re 3% of the way there,” Pal stated. “Just don’t get shaken out.”
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