Published: 14.04.2022
Article reading time:
2 minutes.
Raul Pal, CEO of Real Vision TV, believes that the cryptocurrency market will not go down further, and with a decrease in economic growth, on the contrary, it will show new highs.
Analyst Raoul Pal, in an interview with Layah Heilpurn, stated that the recent numerous events in the world have caused negative sentiment among investors, while the cryptocurrency markets have maintained their resilience. He added that stability indicates that the cryptocurrency market has reached the bottom.
“The balance of probabilities is such that we have reached a minimum as it was last year. We’ve retested it and I think we’ve already bottomed out. War, inflation at 8.5%, higher interest rates, abandonment of the Chinese scenario – so many things happened, and we have not reached a new low. Usually this is a signal that the market has found its bottom, ”says the economist.
Pal believes that a period of economic stagnation could be the spark that triggers the next bull run:
“Now we are looking for growth catalysts. A slowdown in economic growth will be the catalyst for growth. Then we are likely to see a sustained rise in assets that tend to perform better in a slow growing economy. Digital assets tend to perform well in such an environment, which is why ARKK Cathy Wood is now investing in cryptocurrencies for the long term. So this is what we are looking for as a spark, a restructuring, so that investors are less afraid of inflation and more of economic growth.”
According to Pal, the previous four-year cycle driven by the Bitcoin halving, which best reflected the overall trends of the crypto market, has ended.
“I think that [4-летний цикл] ended as the market is much bigger than it was and bitcoin is not as dominant. The four-year cycle is already at its limit and does not have such a strong impact on the market. For example, ETH 2.0 will create potentially different dynamics, so I think the cycles have changed and that these highly volatile trends will become less volatile over time. We saw this with the example of Amazon – in its early days, the same thing happened as with cryptocurrency now. There are now 300 million people using cryptocurrencies, and volatility is gradually decreasing,” Pal said.
Unlike the head of Real Vision TV, Galaxy Digital co-founder Michael Novogratz (Michael Novogratz) believes that the stabilization of the economy, on the contrary, will push bitcoin up.
Source: Bits
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