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Raoul Pal: “Ethereum has weathered the pressures of inflation relatively well”

Raul Pal, CEO of Real Vision TV, noted that despite a number of negative factors, the second-largest cryptocurrency in terms of capitalization did not fall to last year’s lows.

Macroeconomist Raoul Pal on the Investopedia Express Podcast with host Caleb Silver declaredthat the decision of the US Federal Reserve System (FRS) to raise interest rates will cause even more damage to the destabilized economy, including the cryptocurrency market.

Pal noted that the leading smart contract platform has withstood the pressures of inflation and the effects of rising geopolitical tensions in Eastern Europe relatively well.

“Let’s face it, Ethereum is down about 40% this year and Nasdaq is down 25%. This is not scary, because Ethereum has not reached a new low compared to last year, despite inflation, rate hikes, geopolitical tensions and other negative factors. I don’t think Ethereum has shown a smooth wave of growth. We have something of a breakthrough, but Ethereum is still in a very wide price range,” Pal said.

The macroeconomics expert is confident in the long-term perspective of Bitcoin and the cryptocurrency market. He also noted a pause in the emergence of new investors in the market and believes that global inflation is the reason.

“The development of the cryptocurrency ecosystem continues. Central banks are building rails to enter the cryptocurrency market. But we are in a period where retail investors can no longer afford to invest in the market as they are losing more than they are making. Their income is not growing as fast as inflation, so they have to spend money in supermarkets rather than invest in cryptocurrencies,” Pal said.

Real Vision’s CEO stressed that despite the high stock price volatility experienced by Amazon’s early investors, the investment in the company paid off in the long run and proved to be a fairly profitable investment. At the same time, commissions in second-level solutions for Ethereum remain too high.

Source: Bits

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