AltcoinsBitcoin The crypto market is bleeding again, but former hedge fund manager Raoul Pal doesn’t view chaos as a reason to retreat. He believes it’s exactly inside moments like this when conviction evaporates and uncertainty dominates that the foundation of the next rally is quietly built. Crash Conditions Aren’t a Signal to Exit They’re Data Pal argues that extreme sell-offs reveal more about market behavior than bullish phases ever do. When liquidity disappears, risk assets are abandoned and prices swing violently, the natural instinct is to step back. For Pal, that instinct is the enemy. Instead of searching for a perfect bottom, he steadily increases exposure through the decline, fully aware that his portfolio can experience brutal temporary losses. To him, the objective is not timing the turn it’s staying exposed long enough to benefit from it when it arrives. Today’s Panic Looks Familiar to Him According to Pal, there is nothing unique about the current downturn. He sees the same hallmarks that defined previous phases of deep fear: rapid de-risking, forced selling and liquidity drying up so quickly that price discovery becomes distorted. What changes between cycles is the crowd not the pattern. The Market Has Done This Before Then Reversed With Force Pal didn’t reference numbers to justify optimism he referenced history. He pointed to multiple crashes that looked catastrophic before the dust settled: The 2021 sell-off that halved Bitcoin and crushed Ethereum and Solana before all three rallied to record highs The COVID crash that wiped out more than 70% of Bitcoin in 2019-2020 The relentless shakeouts across 2016-2017 that did nothing to derail the bull trend Each time, the narrative was the same: “This time is different.” And each time, the reversal proved the opposite. Altcoins Are Supposed to Hurt More For Pal, the deeper losses in altcoins aren’t a shock they’re exactly what history shows. Whenever the market purges leverage, Bitcoin falls first, and alternative cryptocurrencies collapse harder. He doesn’t consider that failure he considers it typical for every acceleration phase that follows. Pal also noted that in environments where rumors move price more than fundamentals, being glued to the charts can make decisions worse. Temporary detachment, he says, helps investors avoid misreading emotional noise as structural damage. Volatility Doesn’t Invalidate the Macro Trend The heart of Pal’s message isn’t “ignore losses” it’s that losses in the middle of a bull cycle don’t rewrite the long-term trajectory. To him, the current phase reflects panic mechanics, not broken fundamentals. His approach is simple: endure discomfort now to benefit from the asymmetry later. In his own words: the market won’t reward the person who feels safest it rewards the person who survives the part of the cycle that feels the worst. The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo. com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions. Author Alexander Zdravkov is a person who always looks for the logic behind things. He has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team. Related stories.
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Biggest Crypto Gains Come From Holding Through the Pain, According to Raoul Pal
