Raoul Pal Explains Bitcoin's Drop from $126,000 to Current Levels: A $350 Million Investor's Perspective

Market Decline Background: Economist Raoul Pal attributes the recent decline in Bitcoin to a significant market pullback that began on October 10th, linked to technical issues at Binance that disrupted liquidity.

Liquidity Issues: The disabling of market makers' APIs led to a liquidity crisis, resulting in widespread liquidations across exchanges, reminiscent of the 2010 US stock market "Flash Crash."

Risk Reduction Process: Pal notes that liquidity support is being gradually withdrawn, causing significant losses for some and profits for others, but emphasizes that this should not be viewed as market manipulation.

Temporary Situation: Despite the current challenges, Pal believes the situation is not permanent and will eventually stabilize as liquidity conditions improve.