Oct 12, 2022 at 06:55The founder of Real Vision and a former Goldman Sachs executive said that the macroeconomic background is starting to look attractive for cryptocurrency investments. He gives his portion of the arguments and evidence.
The logic of inevitable growth
Raoul Pal already explained earlier why cryptocurrencies have good growth potential. But now his confidence is even stronger. He argues that investor sentiment is now in a state of extreme fear, which, oddly enough, could be a catalyst for growth in risky assets such as bitcoin and altcoins. Here’s his logic.
The bearish trend in the stock market and the difficult situation in the global economy, as well as the general unpredictability from the ongoing war, make everyone think that the global financial system will soon collapse. That’s why investors are reconsidering their profits downward.
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According to the businessman, investors with whom he communicates are very negative and reinsured. If previously the market placed an incredibly high volume of investment and due to this there was growth, now it’s not working, as the sellers prevail over the buyers.
Macroeconomics expert says that this situation could prompt the U.S. Federal Reserve to ease monetary policy. This will be the trigger that will create a new rally for cryptocurrencies.
Now there is no liquidity in the market because there are only sellers left. The expert is sure that this will cause huge problems in the future. “Eventually business will require the government to issue more money and change the market situation,” says Pal. The Fed will simply have to step in to stabilize the market through dollar emission.
The former Goldman Sachs executive director stresses that once central banks start printing money again, assets like Bitcoin and altcoins will begin to skyrocket.
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