Macro investor Raoul Pal has outlined which parts of the digital asset market are poised to break out, describing the current setup as a “crypto waiting room” where major tokens and sectors are preparing for their next move.
In an X post on August 29, Pal highlighted that Total3, which tracks the performance of cryptocurrencies excluding Bitcoin (BTC) and Ethereum (ETH), is on the verge of leaving this waiting room.
He noted that altcoins outside the top 10 are also lined up, representing what he called the purest form of an altcoin season, though these may take longer before fully launching.
Among individual assets, Pal noted that Ethereum is already in full rotation, while Solana (SOL) is positioned as the next to break out.
Other tokens, including Sui (SUI), Dogecoin (DOGE), and XRP, remain in the waiting room but are expected to follow once broader altcoins begin moving. XRP, in particular, is in the process of transitioning into a full cycle move.
Catalysts for cryptocurrencies
According to Pal, the macro backdrop remains highly supportive for digital assets. Rising global liquidity, driven by the need for the U.S., Europe, China, and Japan to roll over large debt loads, creates what he sees as an “absurdly bullish” environment.
“And the rate of change is only going to rise in the key metric of Total Global Liquidity. US, EU, China and Japan all need to roll debts. This is an absurdly bullish backdrop, along with the reg changes, DAT’s and sovereign accumulation along with Wall Street acceptance,” Pal said.
Regulatory shifts, the development of digital asset technology, sovereign-level accumulation, and increasing Wall Street involvement further reinforce the case for sustained momentum.
At the same time, Pal’s Global Macro Investor (GMI) framework, built on analysis of over a thousand key charts, suggests the ongoing crypto cycle could extend well into the first quarter of 2026 and possibly into the second quarter, fueled by prolonged business cycle dynamics and liquidity injections.
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