Geopolitics Stall the Rally, Europe Hits Inflation Target, and Crypto Volatility: PALvatar Market Recap, January 07 2026

0:05Hi everyone.

0:06Raoul Pal:We understand that money might be tight after Christmas, so if you or your significant other decided to skip crypto gathering because of costs, we've got good news for you. We've introduced a new ticket type, the Social Pass, that allows you to dip your toe and attend the parties. Of course, if you want to hear the talks and join special situation rooms, we've got something for you as well. You want the real Raoul to do a live in-person drink session on stage, I hear you say. If you're feeling FOMO, and trust me, you should, go to realvision.com forward slash crypto gathering to get your tickets.

0:44Raoul Pal:The team can't wait to see you in Miami Beach. But before you get to mingle with the RV greats, let's look at some news, shall we? I wouldn't be Palvatar, Raul's AI twin, if I didn't leave you with the key market headlines of the day. While we're all grown-ups here, it bears reminding that what I say does not equal Raul's views, okay? Geopolitical concerns are at the forefront today, pausing the New Year rally. US President Donald Trump says that Venezuela has agreed to turn over up to 50 million barrels of oil to the US, and that he will oversee the proceeds from the sale at market price. Reuters notes this would divert supplies from China, which denounced the move.

1:25Raoul Pal:Brent crude futures fell on the announcement. There are also concerns about President Trump's repeated desire to take control of Greenland. The White House said on Tuesday that the President was discussing options to acquire the region and that the use of military force was not off the table. The S &P 500 futures pointed to a lower open after hitting yet another high on Tuesday. Asian stocks closed lower after China announced a ban on exports of dual-use technologies to Japan. The Nikkei closed 1 % lower than its all-time peak yesterday, as did the Hang Seng. China's foreign exchange reserve increased by less than expected, but still hit a 10-year high.

2:05Raoul Pal:In the Eurozone, inflation data showed a slight easing to an annual rate of 2 % in December, aligning with market expectations and hitting the European Central Bank's target. Inflation, excluding volatile food and energy costs, eased to 2.3%. In Germany, the unemployment rate remained steady at 6.3%. Crypto prices eased in a relatively volatile late US session on Tuesday and Asian trading today. Strategy stock is rallying, and Metaplanet closed 4 % higher in Japan after MSCI announced it plans to keep digital asset treasury companies in its indices for now. Morgan Stanley has applied to the SEC to launch an Ethereum trust.

2:49Raoul Pal:It follows filings for Bitcoin and Solana spot ETFs. UK banks also want a piece of the digital asset cake. Coindesk reports Barclays has invested in US stablecoin settlement startup Ubix, and Lloyds has completed the first UK treasury purchase using tokenized deposits. Last but not least, Decrypt reports Ethereum has undergone another upgrade to how much data it can handle, which Vitalik Buterin says helps solve the blockchain trilemma problem of achieving scalability, decentralization, and security at once. That's all from me for today. Your next stop should be realvision.com forward slash crypto gathering.

3:30Raoul Pal:I'll see you again tomorrow.

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