Raoul Pal: Crypto Market Now Looks Similar As Before March 2020 Rally
According to Raoul Pal, the chief executive of Real Vision CEO the price action of the crypto market is currently flagging bullish signals.
The investment strategist shared with his 898.7K followers on Twitter followers that the crypto market now looks very similar to March of 2020, when the Covid-19 pandemic was just getting started and asset prices collapsed before making a strong recovery.
Pal notes that back in March 2020 the problem was the economic shutdown as a result of the pandemic, while this time the risks are high inflation, surging oil prices, potential interest rate increases and a contractionary monetary policy or quantitative tightening (QT). He believes that all this could have positive impact on the crypto market.
“This moment in Crypto feels a lot like March 2020 – Back then we threw the worst possible news at it (a pandemic and a global shut down) and it fell very sharply but failed to make a new low.
Back then Bitcoin turned up 10 days before the Nasdaq 100 index. But bonds led crypto.
Cut to today – 8% inflation, oil at $105, 7 hikes priced in, plus QT with Goldman Sachs calling for 11 hikes and a war. Crypto failed to make new lows.
Time to watch carefully. Yes, this is a different time but price is suggesting that macro might get more positive for crypto”
Cut to today – 8% inflation, oil at $105, 7 hikes priced in, plus QT with GS calling for 11 hikes and a war. Crypto failed to make new lows.
Time to watch carefully. Yes, this is a different time but price is suggesting that macro might get more positive for crypto.
According to the economist the current bond yields are also pointing towards significant slow down in economic growth, and that it could possibly be the end tech stock sell-off.
“Bonds are suggesting the same – growth is going to evaporate.
It’s a bit early to tell but pay attention. It might also be the end of the tech sell-off soon.”
Bonds are suggesting the same – growth is going to evaporate.
It's a bit early to tell but pay attention. It might also be the end of the tech sell off soon.
