Raoul Pal Looks Into Latest Crypto Market Crash – Remains Long Term Bullish
According to Real Vision Chief Executive, Raoul Pal, the crypto market is right now going through a large scale stress test, which is typical of new and emerging markets.
The ex-Goldman Sachs fund manager shared with his 876K followers on Twitter that despite recent performance of the crypto market, the blockchains are running quite smoothly despite the downward pressure.
“So, we are in the midst of a decent stress test, similar to last year. Outside of some new chains clogging and the partial Maker (MKR) liquidation, any issues? Or all running relatively smooth in DeFi and elsewhere? That is the important thing to me here…”
So, we are in the midst of a decent stress test, similar to last year. Outside of some new chains clogging and the partial Maker liquidation, any issues or all running relatively smooth in DeFi and elsewhere? That is the important thing to me here…
In his tweet Pal is referring to a recent liquidation within MakerDAO, which at the end was less severe than it looked.
The economist compares Bitcoin (BTC) volatility to Amazon in its early days, and compares the charts of the two to identify similarities of Bitcoin today vs Amazon back in 2010.
“Remember how hard it was to hold onto Amazon? This was post-recovery when rates threatened to rise back in 2010…
And here is BTC post-recovery when rates threaten to rise.”
Since 2010, Amazon (AMZN) has rallied 3,330%, and reached an all-time high of $3,773 last year.
Pal talked about macroeconomic factors and their impact on the crypto markets in recent video. He also pointed out that more downside is possible for both equities and digital assets.
Regardless, Pal remains positive with his larges scale outlook and identified entry zones for Ethereum (ETH), should the downtrend continue.
“My view is that markets continue to be volatile for a bit. There’s some more downside to come. If we go back and look at the Nasdaq or Amazon and stuff over that period, we would see these kinds of 20% drawdowns, 15% drawdowns and then the market explodes higher again as the central banks start realizing it can’t raise rates as fast, and then the market does, and then everything stabilizes yet again as things move forward.
That’s kind of my base hypothesis here. Could we have further downside? Could we be forming a head and shoulders top on the Nasdaq? Could that knock through to Bitcoin? Sure. I’ve said for a while now that Bitcoin’s downside is probably $30,000. I think we’re in the kind of buy zone. I’m certainly looking at adding ETH myself here into this area between $2,800 and $2,600.”
