Raoul Pal expects the current crypto liquidity cycle could continue into 2027 as governments face large funding needs while companies continue investing in artificial intelligence infrastructure.
The current debt cycle is around 5.8 years old. Under a normal cycle, liquidity would be expected to reach its later stages by the first or second quarter of 2027. However, he believes the current cycle could last longer because government borrowing and AI-related capital spending are creating additional demand for funding.
“The debt cycle is now 5.8 years. That would give us that we should be ramping up the final aspects of liquidity now into Q1, Q2, 2027, and then normally it would stop,” Pal said.
