TechFlow News, February 2: According to a Cointelegraph report, Raoul Pal, Founder and CEO of Global Macro Investor, stated that the $25 billion in cryptocurrency market capitalization wiped out over the weekend was primarily due to U.S. liquidity shortages—not sector-specific issues within the cryptocurrency industry. Pal noted that Bitcoin and software-as-a-service (SaaS) stocks have recently exhibited synchronized declines, indicating that this shared movement across two distinct asset classes stems from macro-level liquidity concerns.
The gold market absorbed marginal liquidity that would otherwise have flowed into Bitcoin and SaaS stocks; meanwhile, two U.S. government shutdowns and “U.S. financial plumbing issues” further exacerbated temporary liquidity shortages. Pal dismissed concerns that Kevin Warsh—nominated by Trump for Federal Reserve Chair—would adopt a hawkish stance, predicting instead that Warsh would cut interest rates and follow the policy framework of the Greenspan era. Pal remains optimistic about market prospects for 2026.
