Raoul Pal Predicts Crypto Bull Run Could Extend Into 2027

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.

Raoul Pal Sees Two Major Sources of Liquidity Demand

The current environment is different because governments need to finance their debt while companies are spending heavily on AI infrastructure. He described this as two major funding requirements happening at the same time: government borrowing and the AI capital spending cycle.

“So my guess is it continues,” Pal said. “I do think ahead of us is the increase in liquidity. That has to come to fund this debt.”

Pal also pointed to changes in Treasury financing and the increasing use of short-term debt as part of the broader funding environment. For crypto, his argument is that continued liquidity could provide a more supportive environment for the market.