Bitcoin analysts discuss market cycles and US Treasury impact

Macroeconomist Raoul Pal, founder of Real Vision, suggests that recent Bitcoin price corrections do not signal the start of a bear market. Pal argues that Bitcoin is currently undervalued and is undergoing a correction within a larger cycle rather than following a traditional four-year pattern. He cautioned that investors might miss significant rally opportunities if they sell early based on outdated cycle expectations, noting that global liquidity has remained relatively flat.

Separately, Sean Farrell, Head of Digital Asset Strategy at Fundstrat, indicated that US Treasury Department policies could create a bullish environment for Bitcoin. Farrell noted that the Treasury’s strategy of repurchasing long-term bonds while utilizing shorter-term debt instruments could improve market liquidity and put downward pressure on the US dollar. He suggested that such conditions, which may continue through 2027, position Bitcoin as a potential hedge against monetary devaluation.