US Government Reopens as Raoul Pal Predicts Major “Liquidity Flood” for Crypto Markets

The United States government has officially reopened after President Donald Trump signed the long-awaited funding bill approved by both chambers of Congress, ending the historic 43-day shutdown that began on October 1, 2025. As the nation shifts its attention to economic recovery, market strategist and Real Vision CEO Raoul Pal has shared insights on what the crypto sector should expect following this pivotal development.

According to Pal, the end of the shutdown will likely trigger a powerful wave of liquidity in the coming days. In an update on X, he explained that the U.S. Treasury General Account is set to unleash significant spending, injecting fresh capital into the financial system over the next several months. He also anticipates a weaker U.S. dollar and a continued rise in the Federal Reserve’s balance sheet as government operations normalize.

Pal added that the year-end funding squeeze will be a crucial factor to watch, suggesting the possibility of temporary term-funding measures to stabilize liquidity conditions. He also expressed optimism that policymakers will increase efforts to finalize the long-discussed Clarity for Crypto Act, which could provide long-awaited regulatory structure for digital assets. Beyond the U.S., Pal expects China to continue expanding its balance sheet while Europe introduces new fiscal stimulus, collectively contributing to what he calls a global “Liquidity Flood.”

Meanwhile, debates within the Federal Reserve over December rate cuts have intensified. Fed Governor Stephen Miran supports a 50-basis-point cut, arguing that halting monetary easing now would be shortsighted. Others, including San Francisco Fed President Mary and Minneapolis Fed President Neel Kashkari, remain undecided due to mixed economic indicators. Despite the government’s reopening, uncertainty around interest rates has weighed on the crypto market, with Bitcoin slipping below the $100,000 mark alongside declines in other major digital assets.

All eyes now turn to the upcoming FOMC meeting on December 10, where officials will vote on whether to implement another rate cut—an outcome that could significantly influence financial markets heading into year-end.