Raoul Pal, the CEO of Real Vision and a well‑known macro‑investor, posted on X that a stronger dollar, higher interest rates and rising oil prices all tighten financial conditions. He explained that tighter conditions reduce liquidity, which in turn dampens market activity, including crypto. Pal argued that for crypto markets to regain momentum, those three macro variables need to ease. He linked this to the upcoming U.S. midterm elections, saying a Trump administration would likely aim to lower the dollar, rates and oil, possibly through an Iran resolution that could bring oil prices down. If successful, Pal believes risk appetite would return and capital would flow back into crypto assets.

“Dollar, rates and oil all going up... all three tighten financial conditions, which leads liquidity, which leads markets. Crypto needs those three to dissipate. Coming into the midterms Trump wants oil, rates and the dollar down. Oil probably gets done via an Iran resolution... Thats what reignites the ability to take risk and brings capital back into markets.”

— Raoul Pal (@RaoulGMI) on X · X ↗

Raoul Pal is not affiliated with COINMAG. The quote comes from a public post on X; the context was written by the COINMAG newsroom.