Cryptocurrency Market Enters “Waiting Room” Phase, Institutionals Extend Four-Year Cycle
The cryptocurrency market may be in a state of limbo, awaiting its next catalyst, as institutional capital extends the historical four-year cycle, according to industry observers. This development could lead to a prolonged period of price discovery, potentially extending into the first or second quarter of 2026.
Raoul Pal, founder and CEO of Global Macro Investor, suggests that the slow business cycle and liquidity dynamics are contributing factors to this extended cycle. In a recent post, Pal wrote, “Many important parts of the Crypto ecosystem are ready to start in the waiting room… Our work suggests that the cycle extends due to the slow business cycle in the first quarter of 2026 and possibly in Q2 2026 and forces more liquidity for longer.”
PAL uses the economic cycle as a macroeconomic model to track the current phase of the wider cycle of the global economy. He emphasizes the importance of patience, stating, “People have to learn patience. The path is clear… but never, never expect a tick for the perfection of ticks.”
Source: Raoul Pal
Enmanuel Cardozo, market analyst at the Real-World Asset Tokenization Platform, agrees with Pal’s assessment, stating, “Raoul’s framework that crypto is in the ‘waiting room’ is the way the markets are at the moment.” Cardozo attributes the recent retreat to “political tensions between President Trump and the Federal Reserve,” rather than on-chain dynamics.
The analyst notes that institutional positioning has not become bearish, supporting the thesis of an extended cycle in 2026. Despite the “tug of war,” institutional allocations of the two leading cryptocurrencies remain robust. Additionally, StableCoin inflows to Binance exceeded $1.65 billion, which could be a precursor to renewed cryptocurrency investments, as stable coins are the primary funding tools for traders.
Leading Cryptocurrencies Prepare for Next Parabolic Phase
Some of the leading altcoins in the cryptocurrency market are preparing to exit the “waiting room” and enter the next parabolic phase of the rally. According to Pal, Solana (SOL) is one of the next altcoins to enter this phase, followed by SUI (SUI) and Dogecoin (DOGE).
Source: Raoul Pal
The diagram shows an ascending triangle pattern, which is viewed by technical traders as a bullish continuation pattern, signaling a potential breakout in confirmation. After Solana, SUI (SUI) will be the next altcoin to gain traction, followed by Dogecoin (DOGE), once the largest cryptocurrencies outside of the top 10 begin to gather momentum, forecasts Pal.
Source: Raoul Pal
In the meantime, the XRP (XRP) token is “in the process of full porting,” while the largest altcoins take “longer” to gain momentum, with the exception of the top 10.
Read more about the cryptocurrency market and its potential trends at https://cointelegraph.com/news/crypto-waiting-room-market-top-q1-2026-raoul-pal?utm_source=rss_feed&utm_medium=rss_tag_altcoin&utm_campaign=rss_partner_inbound
