Macro guru Raul Pal believes the bottom is definitely in the cryptocurrency market.
In a new interview with wealth management firm Arca, a former Goldman Sachs executive says the macroeconomic conditions that have kept crypto markets bearish for most of this year are starting to change.
For me, the macro is a rollover. We see it globally, that’s the evaporation of growth.
On top of that, the narrative has not caught up, with most commodities falling between 30% and 50% everyone expects oil to hit $200. I think the washout is coming, but it’s going down to $60. This is the final inflation story. “
According to Mr. Pal, changes in the macro environment will spill over to companies and the labor market.
“People piled up a ton of inventory after Covid-19. These inventories are now unsold because the economy is slowing and inflation is eating away at disposable income. That’s why we’re at Walmart. have seen it from [and] Amazon. They’re trying to mark down inventory and shift it. People are laying off staff. So the macrocycle will enter an ugly phase. “
Pal emphasizes that bad news for the economy is good news for financial markets.
Why is that bullish on Raul? Liquidity conditions will improve as a result of lower inflation and lower bond yields. is liquidity.
When it comes to cryptocurrencies, changes in the macro environment could trigger a wave of demand from institutional investors, Pal said.
Right now, the other big players in the space hedge funds, macro funds, and institutional investors, too are a function of liquidity. can be applied.”
The macro guru also believes cryptocurrencies are poised to ignite a new market cycle as liquidity conditions improve.
In my view, let’s take the probability at 70%.
Me
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