Hodgson's prediction comes after he masterminded Palace's shock 3-2 win over Manchester City on the weekend which handed Jurgen Klopp's side a four-point gap as league leaders.
Liverpool remain the only unbeaten side in the Premier League this season after 18 games and pulled past Wolves 2-0 as City surprisingly dropped points.
Though the Reds now have some breathing room at the top, Hodgson stressed City shouldn't be worried about the current situation, noting Klopp's men will slip up sooner or later.
“I don’t think Pep Guardiola will be too concerned about a four-point gap with 20 games left to play,” Hodgson said.
“One of those is going to be against Liverpool, but even without that game the chances are that Liverpool will go somewhere and something like this will happen.
"Someone will beat them against the odds, there is a long way to go yet and there will be an upset somewhere along the line."
Klopp, who is yet to win silverware with Liverpool, certainly isn't getting ahead of himself despite Christmas history favouring the Reds.
"Somebody said the last four times the that was first in the table at Christmas won the league, but was it ever such a tight race?" Klopp said.
Liverpool centre-back Dejan Lovren isn't banking on his side slipping up anytime soon however, recently calling on the them copy Arsenal's Invincibles and go the entire season unbeaten.