Raoul Pal Declares: Bitcoin’s Recent Correction Is NOT a Bear Market Signal

Bitcoin's price stumbles, but one of finance's biggest names says the bull run is far from over.

Forget the panic. While traders watched another red candle form on the charts, macro guru Raoul Pal delivered a starkly different verdict. This isn't the start of a crypto winter—it's a classic shakeout. The recent pullback, he argues, is a healthy correction within a much larger structural uptrend, a necessary breather that flushes out weak hands before the next leg up.

The Macro Perspective vs. Short-Term Noise

Pal's stance cuts through the daily noise of leverage liquidations and fear-driven tweets. His view is anchored in broader financial currents: global liquidity cycles, institutional adoption curves, and Bitcoin's hardening role as a digital reserve asset. The narrative hasn't changed; only the impatient have left the building.

What a 'Real' Bear Market Looks Like

Contrast this dip with historical capitulation events—those sustained, soul-crushing declines where volume dries up and believers turn to skeptics. We're not there. Trading activity remains robust, developer activity is relentless, and major holders are accumulating, not dumping. This looks more like a tactical retreat than a routed army.

The market, in its infinite wisdom, occasionally needs to remind everyone that getting rich isn't supposed to be a straight line up—unless you're a central banker printing money, of course. Pal's call is a bet on resilience over reaction, on signal over sentiment. The correction is a feature, not a bug. Now, watch who's buying.

Bitcoin Price correction has triggered widespread uncertainty, but top analysts Anthony Pompliano and Raoul Pal say the market is far from breaking down. Instead, they argue the pullback is setting up one of the strongest bullish phases for BTC heading into 2025–2026.

Pompliano: “Huge Institutional Big Money Demand to Buy Bitcoin”

Crypto investor Anthony Pompliano says Bitcoin’s sharp dip is not a sign of weakness but a deliberate MOVE by major institutions preparing for accumulation.

According to Pompliano, large players are pushing BTC lower to secure better entry points ahead of a major liquidity expansion.

Pompliano had previously predicted $150,000 by the end of February, and although he now admits the timeline may shift as “facts have changed,” his target remains unchanged.

Bitcoin Price To Rebound Soon 

A series of macro and structural factors are forming a strong support base for BTC’s next leg upward:

1. Deflationary Pressures Increasing

Oil, energy, housing, and food costs continue to decline. Analysts expect CPI to fall toward 2%–2.5% in 2025, improving risk sentiment.

2. Fed Interest Rate Cuts 

With inflation cooling, the Federal Reserve’s policy rate cuts are historically bullish for Bitcoin and other risk assets.

3. Institutional Accumulation Patterns

Large investors may be contributing to downside volatility, accumulating at lower prices before next year’s liquidity expansion.

Pompliano believes this “institutional pounce” will trigger Bitcoin’s next explosive move.

Raoul Pal Says “This Is a Correction, Not a Bear Market”

Macro expert Raoul Pal agrees that bitcoin is not entering a bear cycle. He says the pullback is a normal correction in an ongoing bull market, and the old halving-cycle narrative is rapidly fading. Pal argues that global liquidity will be the dominant force moving markets in 2026.

According to Pal, several factors could trigger a significant surge in global liquidity, potentially boosting Bitcoin. These include large fiscal stimulus under the TRUMP administration, regulatory easing for banks through the Supplementary Leverage Ratio (SLR), a potential term repo program to stabilize funding markets, and a weaker U.S. dollar, historically a strong driver of Bitcoin rallies. If this thesis holds, Pal expects Bitcoin to show strong performance in January and February.

Pal also highlights the upcoming Clarity Act, which aims to provide regulatory certainty for digital assets. This, he says, could unlock new institutional demand and remove long-standing market uncertainty.

Pal believes the coming liquidity wave will mark the end of the traditional four-year halving cycle.

Altcoin Season Set for 2026

Pal says the altcoin season hasn’t started yet. Key triggers are the ISM Manufacturing Index rising above 50, signaling economic expansion.

Once that flips likely in 2026, he expects Bitcoin dominance to drop as investors rotate into smart-contract and high-beta altcoins.